Hyperscalers Are the Backbone of AI. Here's Why I Own Amazon, Alphabet, and Meta Platforms.
Amazon, Alphabet, and Meta Platforms are three top AI stocks to own for the long term.
Overview
Hyperscalers are companies that own massive data centers. While they are often associated with cloud computing providers, that isn't always the case, as some megacap tech companies still prefer to build out their own infrastructure to save costs.
Ultimately, these are the companies that are driving the AI infrastructure boom. They are spending massive amounts on capital expenditures (capex), and while pick-and-shovel plays like semiconductor companies are reaping the rewards, it is the deep-pocketed hyperscalers that are in control. After all, if they don't see strong returns on their AI infrastructure investments, they can cut off the spending spigot.
Details
I currently own shares in three top hyperscalers -- Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), and Meta Platforms (NASDAQ: META) -- and think they are three of the best growth stocks to own over the long haul. All three have great core businesses with wide moats that generate massive operating cash flow that can help pay for their AI infrastructure spending, on which they are getting great returns. Here's why I own these three stocks.
Source
Originally published at www.fool.com.