The $725 Billion AI Capex Cycle Has 3 Bottlenecks: Power, Memory, and Optical Bandwidth. 3 Stocks Poised to Win Big.
This impending spending will benefit many companies, but there's a good way to invest in each of the AI industry's next biggest needs.
The $725 Billion AI Capex Cycle Has 3 Bottlenecks: Power, Memory, and Optical Bandwidth. 3 Stocks Poised to Win Big.
Overview
Like any other new industry, the artificial intelligence (AI) business continues to evolve as it grows. It's getting better -- and more cost-effective -- by figuring out where it's deficient. And right now, its biggest roadblocks are a lack of memory chips, a strained supply of power, and networking solutions without nearly enough throughput capacity.
It's not afraid to spend big money shoring up these problems either. Given recent spending outlooks from top names in the AI infrastructure business, such as Microsoft, Amazon, and Alphabet's Google, Goldman Sachs now expects $765 billion worth of AI infrastructure investments to be made this year alone. The lion's share of these are outlays likely to be directed at the three aforementioned bottlenecks.
Details
And this raises the question: Which companies are best positioned to benefit from this anticipated capital spending? Here's a closer look at a good guess for each category.
Source
Originally published at www.fool.com.
