Here Are 5 AI-Related Stocks to Buy and Hold for the Next 5 Years
Written by Matthew Benjamin for The Motley Fool -> Copper and electricity demand by data centers is soaring. These facilities also require several types of memory products. Other electronic components are also critical for the AI expansion. The major driver of the stock marke
These facilities also require several types of memory products.
Other electronic components are also critical for the AI expansion.
The major driver of the stock market right now, and a huge contributor to economic growth, is the massive investment in artificial intelligence (AI) infrastructure -- primarily AI data centers -- by the so-called hyperscalers.
Hyperscalers are enormous technology companies that are borrowing and spending hundreds of billions of dollars a year to build AI data centers , including the big four: Meta Platforms , Microsoft , Amazon , and Alphabet . There are others, of course, but those four have more than tripled their capital expenditures (capex) on AI infrastructure over the last five years.
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Companies worldwide spent almost $1 trillion on data centers last year, according to McKinsey & Company. That's projected to reach $4 trillion by 2030.
I would be surprised if that figure is not revised higher over the coming months and years -- many times. As Apollo noted in a recent research report, estimates of capital expenditures on data centers have risen multiple times over the past year.
If those forecasts are even partly true, AI capex will continue to drive economic growth and sustain the bull market for several years.
