Corporate spending on artificial intelligence is projected to reach an astounding $10 trillion, according to Morgan Stanley, driving significant investment across the tech sector. Major companies are currently working to secure funding for an estimated $660 billion spending spree on AI infrastructure. Microsoft stands out as a key player, leveraging its software leadership to integrate AI features, which boosted its cloud revenue by 26% last quarter and saw Microsoft 365 Copilot paid seats jump 160%. Broadcom also benefits from this surge, supplying essential networking components for data centers and reporting a 39% increase in adjusted profits.
Nvidia continues to dominate the AI hardware market, supplying powerful GPUs and seeing its total revenue surge 62% last quarter, with new systems and the Blackwell platform on the horizon. Competitors Intel and Advanced Micro Devices (AMD) are also experiencing heightened demand. Intel's stock rose 4.9% amid reports of a CPU shortage, with the company warning Chinese customers of up to six-month wait times for server CPUs. Intel is also investing in AI chip startups and expanding into data center GPUs, while Cathie Wood recently invested in AMD after a 17% stock dip, highlighting its role in AI tasks.
The intense demand for AI is creating a major shortage in memory chips, benefiting companies like Micron Technology, Western Digital, and SanDisk. Micron is already sold out for 2026, with revenue reaching $13.6 billion. Western Digital leads in 3D NAND flash memory, and SanDisk reported a 31% revenue increase last quarter. Pure Storage is also gaining traction in the AI storage market, offering advanced all-flash platforms that provide better storage density and use less power for AI tasks, earning it a top ranking from Gartner.
Meanwhile, tech giants Meta Platforms and Alphabet (Google) are committing massive capital to AI. Meta plans to spend between $115 billion and $135 billion on AI infrastructure in 2026, a significant increase that has impacted its operating margin, despite strong Q4 2025 revenue growth of 24%. Alphabet plans to invest up to $185 billion in AI this year, supported by Google Cloud's revenue surging 48% to $17.7 billion. This substantial investment, however, is estimated by Morgan Stanley to reduce Alphabet's free cash flow per share significantly in the coming years.
Other companies are also adapting to the AI era. Intuit's stock fell 45% from its peak due to AI disruption fears, but the company is actively integrating AI through Intuit Assist into products like TurboTax and QuickBooks, projecting strong revenue and earnings growth for fiscal year 2026. OneStream, an AI-enabled Finance platform, was recognized as a Leader in the IDC MarketScape, with a take-private offer now setting its stock's reference value.
Key Takeaways
- Corporate spending on artificial intelligence is projected to reach $10 trillion, with major tech companies planning a $660 billion spending spree.
- Microsoft is a top AI stock, with Microsoft Cloud revenue up 26% and Microsoft 365 Copilot paid seats jumping 160% last quarter.
- Nvidia continues to lead in AI GPUs, with total revenue surging 62% last quarter and the upcoming Blackwell platform.
- Broadcom benefits from AI data center investments, seeing a 39% increase in adjusted profits from networking components.
- The AI boom is causing a significant memory chip shortage, boosting companies like Micron, Western Digital, and SanDisk, with Micron sold out for 2026.
- Pure Storage is positioned for growth in AI storage, offering advanced all-flash platforms with better density and power efficiency.
- Meta Platforms plans to spend $115-$135 billion on AI infrastructure in 2026, impacting its operating margin despite strong revenue growth.
- Alphabet plans to invest up to $185 billion in AI this year, driven by Google Cloud's 48% revenue surge, though this may reduce future free cash flow.
- Intel's stock rose due to AI hardware demand and CPU shortages, with Intel expanding into data center GPUs and AMD producing GPUs for AI tasks.
- Intuit is integrating AI through Intuit Assist into products like TurboTax and QuickBooks, projecting 12-13% revenue growth and 15% earnings growth in fiscal year 2026.
Microsoft and Broadcom Lead AI Investment Opportunities
Corporate spending on artificial intelligence could reach $10 trillion. Microsoft and Broadcom are two companies positioned to profit from this growth. Microsoft uses its software leadership to add AI features, boosting its cloud revenue by 26% last quarter. It also invests in data centers and AI chips like the Maia 200. Broadcom supplies networking components for data centers, seeing a 39% increase in adjusted profits. Analysts expect Broadcom's earnings to grow 31% annually in the coming years.
Microsoft and Broadcom Shine in AI Stock Market
Corporate spending on artificial intelligence is expected to reach $10 trillion, according to Morgan Stanley. Microsoft is well-positioned to profit by adding AI features to its software and cloud services. Its Microsoft Cloud revenue grew 26% last quarter, and Azure platform revenue increased 39%. Broadcom also benefits as companies like Microsoft invest in data centers, needing its high-performance networking components. Broadcom's adjusted profits rose 39% year over year, and analysts predict 31% annual earnings growth.
Microsoft and Nvidia Lead Top AI Stock Picks
Leading artificial intelligence companies show strong growth, with Morgan Stanley predicting AI will drive 20% of next year's economic growth. Microsoft is a top choice, as its Microsoft 365 Copilot paid seats jumped 160% last quarter. CEO Satya Nadella expects AI to greatly expand their market. Nvidia is another strong contender, supplying powerful GPUs for AI and leading the market for two decades. Nvidia's total revenue surged 62% last quarter, and it continues to innovate with new systems and the upcoming Blackwell platform.
Pure Storage Outshines Sandisk in AI Storage Market
Sandisk shares have soared 1,560% in the past year due to memory chip shortages, but Wall Street analysts see Pure Storage as a better buy. Analysts predict a 20% upside for Sandisk and a 40% upside for Pure Storage. Sandisk is a major supplier of NAND flash memory, a market Nvidia's CEO believes will be the largest for storage. Pure Storage offers advanced all-flash storage platforms with unique DirectFlash modules, software, and subscription services. Its technology provides better storage density and uses less power for AI tasks, earning it a top ranking from Gartner.
Memory Chip Shortage Boosts Micron Western Digital SanDisk
The demand for memory chips in artificial intelligence is creating a major shortage, benefiting companies like Micron Technology, Western Digital, and SanDisk. Micron is focusing on high-margin enterprise memory and is already sold out for 2026, with revenue jumping to $13.6 billion. Western Digital leads in 3D NAND flash memory for various devices and saw its stock rise over 50% this year. SanDisk, now independent, also dominates the NAND market, reporting a 31% revenue increase and a 64% rise in data center revenue last quarter. This AI-driven demand suggests a prolonged upswing for memory stocks.
Intuit Stock Drops Amid AI Fears Integrates Intuit Assist
Intuit's stock has fallen 45% from its peak due to investor concerns about artificial intelligence disruption. However, the company is actively integrating AI into its products through Intuit Assist, enhancing user experiences in TurboTax, QuickBooks, and Mailchimp. This strategy aims to turn AI into a competitive advantage. The stock now has an attractive valuation, trading at 19 times forward earnings and a 1.3 PEG ratio. Intuit expects strong growth, with revenue projected to increase 12-13% and earnings 15% in fiscal year 2026. The upcoming February 2026 earnings report could be a key event for a stock rebound.
Meta Stock Drops Amid Soaring AI Investment Costs
Meta Platforms' stock price recently fell due to investor worries about its huge spending on artificial intelligence. The company plans to spend between $115 billion and $135 billion on AI infrastructure in 2026, a big jump from 2025. This investment aims to build data centers, servers, and AI chips for "personal superintelligence." Despite these costs, Meta's core business is strong, with Q4 2025 revenue up 24% to $59.89 billion and 3.58 billion daily active users. However, its operating margin decreased from 48% to 41% due to AI integration expenses.
OneStream Named IDC Leader for AI Finance Platform
OneStream recently earned recognition as a Leader in the IDC MarketScape for Worldwide Enterprise Planning, Budgeting, and Forecasting Applications 2026. This award highlights the strength of its AI-enabled Finance platform. The company's investment story focuses on its AI-first platform becoming a standard for large businesses, despite being unprofitable. A take-private offer of US$24.00 per share from Hg and General Atlantic now sets the stock's reference value. However, risks include continued losses and potential deal delays.
Google Cloud Revenue Soars 48 Percent Boosting Alphabet AI
Alphabet reported strong Q4 2025 results, with Google Cloud revenue surging 48% year over year to $17.7 billion. This segment now makes up 15.5% of Alphabet's total sales, and its operating income jumped 154% to $5.3 billion. Despite these gains, Alphabet's stock dropped 6.5% after the report, losing about $250 billion in market value. The company plans to double its capital expense budget in 2026 to support Google Cloud's continued growth. Google Cloud's operating margin has also nearly doubled in the past year, showing its increasing profitability.
Alphabet Boosts AI Spending to $185 Billion This Year
Alphabet plans to significantly increase its capital spending this year, investing up to $185 billion in artificial intelligence, much higher than expected. This large investment is supported by strong growth in its search advertising, up 17%, and Google Cloud sales, which rose 48% last quarter. Analysts believe this spending shows AI is improving how Alphabet's core products engage users and make money. While this investment is immediate, Morgan Stanley estimates it could reduce free cash flow per share by 58% in 2026 and 80% in 2027. Alphabet is betting on long-term gains by prioritizing AI infrastructure now.
Intel Stock Rises Amid AI Demand and CPU Shortage
Intel's stock rose 4.9% to $50.59 on Friday, driven by increased demand for AI hardware and reports of a CPU shortage. Intel and Advanced Micro Devices informed customers in China about a server CPU supply crunch, with Intel warning of up to six-month wait times. This shortage stems from surging AI adoption, which also boosts demand for traditional computing. Intel is investing in AI, including a $100-150 million stake in AI chip startup SambaNova Systems and expanding into the GPU business for data centers. The Semiconductor Industry Association forecasts global semiconductor sales to reach $1 trillion this year.
Cathie Wood Buys AMD CoreWeave After Stock Dips
Cathie Wood, known for buying innovative companies at lower prices, recently invested in Advanced Micro Devices and CoreWeave. She purchased AMD shares after they dropped 17% on February 4, adding them to five of her Ark funds. AMD, a competitor to Nvidia, produces GPUs essential for artificial intelligence tasks and is now trading at 29 times forward earnings. Wood also bought CoreWeave, a company that provides access to Nvidia GPUs for AI workloads, after its stock fell 50% from its highest point. CoreWeave has seen triple-digit revenue growth due to high demand for its AI capacity.
Big Tech Rushes to Fund $660 Billion AI Spending
Major technology companies are quickly working to secure funding for an enormous $660 billion spending spree on artificial intelligence. Executives at these companies face tough decisions on how to finance this investment. They must choose between reducing returns for shareholders, using company reserves, or seeking money from financial markets. This unprecedented spending highlights the intense competition and high stakes in the AI sector.
Sources
- 2 Artificial Intelligence (AI) Stocks That Could Help Make You a Fortune
- 2 Artificial Intelligence (AI) Stocks That Could Help Make You a Fortune
- 2 Top Artificial Intelligence (AI) Stocks to Buy Right Now
- Sandisk Stock Is Up 1,560% in the Past Year -- but This AI Storage Stock Is a Better Buy, According to Wall Street
- The AI Memory Crunch Is Creating Winners and Losers. Here Are the Stocks to Buy
- Intuit: AI Fears Are Likely Overdone
- Meta Faces Market Turmoil As AI Spending Soars
- Did IDC’s Leader Nod Just Cement OneStream’s (OS) AI Finance Edge in Investors’ Minds?
- Google Cloud Revenue Just Surged 48%. Is Alphabet the Best AI Stock to Buy Now?
- Alphabet sends bullish AI signal as capital spending accelerates By Investing.com
- Intel stock back above $50 after AI capex bounce and China CPU shortage report — what to watch next week
- Cathie Wood Goes AI Bargain Hunting: She Just Bought a Stock That Crashed 17% in 1 Trading Session and a Stock That's Dropped 50% From Its Peak.
- Big Tech groups race to fund unprecedented $660bn AI spending spree
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