The AI Trade Is Rotating From Chips to Infrastructure. 2 Stocks Riding the Shift.
As money moves past the chipmakers, the companies that power and cool AI data centers are having a moment.
Overview
For two years, the easiest way to invest in artificial intelligence (AI) was to buy the chipmakers. Lately, however, some of that money has started to move.
As some investors look past chip winners like Nvidia and the memory names, attention is shifting to a less glamorous corner of the boom: the companies that supply the power and cooling that AI data centers can't run without.
Details
The logic is simple. Every new AI cluster needs enormous amounts of electricity and a way to keep thousands of chips from overheating. That demand flows to a different set of suppliers than the ones making the processors.
Source
Originally published at www.fool.com.
Related Articles
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.