The race for AI supremacy is far from over, and two tech giants are poised to reap the rewards. Recent reports indicate that major tech firms are ramping up their AI-related capital expenditures at a breakneck pace, signaling that the AI revolution is just getting started. What this really means is that investors should be paying close attention to Nvidia (NVDA) and Broadcom (AVGO) as they stand to benefit handsomely from this trend.
The AI Buildout Accelerates
According to Reuters, tech giants like Amazon, Alphabet, and Microsoft are planning to drastically increase their AI-related capital expenditures in 2026. The bigger picture here is that these hyperscale data center owners are racing to build out the infrastructure necessary to support the growing demand for AI-powered services and applications.
"The AI buildout is far from over," says Keithen Drury, a technology analyst at The Motley Fool. "These record-setting capex numbers indicate that the leading tech firms see AI as mission-critical for the years ahead."
Nvidia and Broadcom Poised to Capitalize
As the primary suppliers of the chips and components that power modern AI systems, Nvidia and Broadcom are set to reap the rewards of this surging demand. Nvidia's GPUs remain the gold standard for AI workloads, while Broadcom's specialized data center semiconductors are essential for the high-performance computing required by large-scale AI models.
"Nvidia and Broadcom are the primary beneficiaries of this AI spending surge," explains Drury. "Their products are mission-critical for the hyperscalers, and they're poised to see their market share and revenues grow substantially as a result."
With the AI market expected to reach over $1 trillion by 2030 according to Gartner research, investors would be wise to consider adding Nvidia and Broadcom to their portfolios before this AI-fueled growth story accelerates even further.
As this article from befirst-smileagain recently covered, the enthusiasm for AI technology among the next generation of technologists is palpable. With powerhouses like Nvidia and Broadcom leading the charge, the future of AI has never looked brighter.