AI Spending Could Reach $4 Trillion by 2030. Here Are 3 Must-Own Stocks if It Does.

Group 1: Market Projection - Nvidia projects global data center capital expenditures could reach $3 trillion to $4 trillion by 2030, indicating significant spending on AI infrastructure [1] - The expected capital expenditure for data centers in 2025 is projected to be $600 billion, requiring a compound annual growth rate (CAGR) of 46% to reach the 2030 target [3] - The AI arms race is not limited to the U.S.; Chinese and European companies are also expected to contribute significantly to AI spending [4] Group 2: Investment Opportunities - Companies providing AI infrastructure, such as Nvidia, Taiwan Semiconductor, and Broadcom, are identified as strong investment opportunities [2][5] - Nvidia is recognized as a leader in AI investment, with its GPUs being the preferred choice for training AI models [6] - Broadcom is emerging as a competitor to Nvidia by designing custom AI accelerator chips tailored for specific workloads, which may become increasingly popular [7] - Taiwan Semiconductor is positioned to benefit from increased AI spending as it manufactures chips for both Nvidia and Broadcom, making it a key player in the supply chain [8] Group 3: Future Outlook - The trio of Nvidia, Taiwan Semiconductor, and Broadcom is expected to continue their strong performance over the next five years, with potential for significant upside if Nvidia's projections hold true [9]