Who will benefit from AI spending?

 Who will benefit from AI spending?

WSJ reported on 2/8/25 that big tech will continue to spend billions on AI. AMZN,GOOGL and MSFT are expected to spend $315 Billion over the next few years. AMZN in particular is going to spend $100 Billion in just one fiscal year!

 This all sounds exciting. But we are investing with one goal – to make money!

This involves picking the right stocks to benefit from the AI infrastructure boom. This could be the big tech, the construction companies (see my earlier blog), or the companies that will end products to the big tech.

 Why is such high spending needed?

This will involve more hardware, the data centers that will use the hardware, then building AI models, training them, building the cloud infrastructure, etc. Last but not least, to hire the people and the cost of meeting with the regulations.

The major tech companies above will be the beneficiaries, but most of them appear to be overvalued now. Just because something is right to do doesn’t mean we need to do it now. Keep an eye on the chart and ensure the technical are favorable. The ideal buying time is when the stock breaks out on heavy volume after consolidating for a long time.

Other companies that will benefit are:

ASML (Lithography)

TSMC (manufacturing of chips)

ARM holding (Chip design)

AMD – Potential alternate to NVDA

INTC – Could they emerge from their current state and regain?

Other companies are: Siemens, QCOM, AVGO and AECOM.

 This blog is not investment advice; I am not an investment advisor but a blogger. You are investing at young risk. 

 

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