$1.3 Trillion in Projected Data Center Spending in 2027 Makes These Stocks No-Brainer Buys
Yahoo Finance ·
Nvidia ( NVDA +2.62% ) released a nugget of information during its Q2 earnings call. It noted that it believes the big five AI hyperscalers will spend around $1.3 trillion in capital expenditures during 2027. That's a simply incredible figure, and it shows there will be much more spending on AI hardware and infrastructure in 2027. That bodes well for several stocks, but the four I think will benefit most are Nvidia, Broadcom ( AVGO +0.09% ) , Taiwan Semiconductor ( TSM +2.25% ) , and Micron ( MU +4.00% ) . If you don't own these four, now is the perfect time to scoop up shares, as the growth in 2027 could send these stocks soaring. Both Nvidia and Broadcom are known as fabless design firms, meaning they design the computing units but outsource much of the fabrication to external companies. This makes them a pretty high-margin business, which is great to invest in. Nvidia makes GPUs, the most widely used accelerated computing units in the AI community. However, some companies are looking for a more specialized approach and turning to Broadcom's design services to build a custom AI chip. The future will be a mix of both computing unit types, not an outright winner. That makes both companies worth considering, and each has some major projections for 2027.
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