Artificial Intelligence (AI) Infrastructure Spend Could Hit $6.7 Trillion by 2030, According to McKinsey. 4 Data Center Stocks to Load Up on Right Now Like There's No Tomorrow.

Group 1: AI Infrastructure Investment Trends - McKinsey & Company projects that spending on AI infrastructure could reach $6.7 trillion by 2030, with nearly$3.1 trillion allocated to chip designers for AI-equipped data centers [1] - Major tech companies, referred to as the "Magnificent Seven," including Microsoft, Alphabet, and Amazon, are significantly investing in AI infrastructure, with a forecasted capex of nearly $260 billion in 2023 [3][6] - Meta Platforms is also increasing its capex budget for 2025, joining other major players in the chip purchasing trend [7] Group 2: Key Beneficiaries of AI Infrastructure Investments - Nvidia and Advanced Micro Devices (AMD) are identified as top picks among AI chip designers, with Nvidia holding over 90% of the AI GPU market [10] - Broadcom is positioned to benefit from rising AI infrastructure spending by providing networking equipment for data centers and custom silicon solutions [11] - Taiwan Semiconductor Manufacturing (TSMC) plays a critical role in fabricating chips designed by Nvidia, AMD, and Broadcom, making it a lucrative opportunity in the AI infrastructure space [12][13] Group 3: Market Valuation and Investor Sentiment - There has been a notable decline in the forward price-to-earnings (P/E) ratios for Nvidia, Broadcom, AMD, and TSMC, attributed to uncertainties surrounding new tariff policies [16] - Despite short-term market fluctuations, the long-term growth potential in AI infrastructure spending remains strong, encouraging investment in these semiconductor stocks [17]