Ai Infrastructure Stocks

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Ai Infrastructure Stocks

These Stocks Will Benefit From AI Infrastructure Spending

Many big companies are spending heavily on the AI infrastructure buildout. One particular company which is spending a lot of money is SpaceX. It plans to further increase its computing capacity. The plan is to increase it to 20 gigawatts over the coming years.

This increased amount of spending means huge business for companies like SK Hynix, Vertiv, and others. This directly means we can expect upside in their stock prices.

SK Hynix

High bandwidth memory (HBM) is needed to get the full potential out of Nvidia GPUs. In fact, HBM has become a key component in modern AI workloads.

SK Hynix is one of the many companies that make HBM. The high demand has led to a shortage of HBM in the market. This means the companies are now charging a premium for HBM.

The available data shows that SK Hynix is a market leader when it comes to HBM. It has a market share of around 50% and is working closely with Nvidia. SK Hynix also has a supply deal with Nvidia that's worth around $500 billion.

Vertiv

Most people think AI data centers only need memory, GPU, and other computing hardware. But what they forget is that AI data centers also need a lot of power. At the same time, these data centers need cooling, ventilation, and other services.

Vertiv specializes in providing power and cooling management infrastructure to AI data centers. Just recently, many companies have talked about how energy and cooling are the key bottlenecks in the industry.

So, the increased spending on AI infrastructure means Vertiv will also get a share of this! With that in mind, we can expect further upside in the Vertiv share price.

Even if Vertiv doesn't supply directly to SpaceX, it will still benefit from the increased spending on AI infrastructure.

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