Analyst Backs 3 AI Stocks as Hyperscaler Capex Targets $1 Trillion
Updated
Updated · The Motley Fool · Jul 18
Analyst Backs 3 AI Stocks as Hyperscaler Capex Targets $1 Trillion
3 articles · Updated · The Motley Fool · Jul 18
Summary
Nvidia, Micron and Alphabet were singled out as top AI buys, with the call centered on data-center buildouts still being far from complete.
$1 trillion in 2027 capex from the four biggest AI hyperscalers—up from $650 billion this year—underpins the thesis, while Alphabet has already flagged significantly higher spending next year.
Nvidia remains the core infrastructure bet after 85% quarterly revenue growth, with analysts projecting nearly 100% growth next quarter even without China chip sales.
Micron adds a memory-chip angle, as management expects supply tightness to last beyond 2027, supporting elevated pricing and stronger profits.
Alphabet offers the spender's side of the AI trade: Google Cloud revenue jumped 63% last quarter, suggesting its heavy infrastructure outlays could reshape the business over time.