Hyperscalers to Spend Over $500 Billion on AI in 2026: Here Are the 3 Stocks to Buy

Core Insights - AI hyperscalers are expected to spend over $500 billion on infrastructure in 2023, with major companies like Microsoft, Alphabet, Amazon, and Meta Platforms accelerating data center build-outs [1] Group 1: Nvidia - Nvidia is identified as a primary beneficiary of the increasing infrastructure spending, having initiated the AI revolution with its GPUs, which are essential for generative AI applications [3] - The company's operating cash flow is growing, allowing Nvidia to continue innovating with new GPU architectures approximately every 18 months, with a significant backlog of orders for its latest chips, Rubin [4][5] - Demand for Nvidia's general-purpose chipsets is expected to remain strong as investments in AI training and inference continue to rise [5] Group 2: Broadcom - Broadcom plays a crucial role in AI data center construction by providing essential components like networking switches and interconnects that ensure GPU clusters operate efficiently [6][7] - The company also benefits from rising infrastructure spending through collaborations with major firms like Apple and Alphabet to design custom application-specific integrated circuits (ASICs) [8]