Motley Fool Backs 3 AI Stocks as Data Center Build-Out Nears $3 Trillion
Updated
Updated · The Motley Fool · Jun 28
Motley Fool Backs 3 AI Stocks as Data Center Build-Out Nears $3 Trillion
3 articles · Updated · The Motley Fool · Jun 28
Summary
$3 trillion in global data center construction through 2028 underpins Motley Fool’s pick of Arm Holdings, IREN and Nvidia as top AI stocks for a long runway.
Arm posted record quarterly revenue of $1.49 billion, up 20%, with management expecting it to lead data center CPU share by decade-end as royalty revenue from energy-efficient chips accelerates.
IREN, valued near $18 billion after a 385% one-year surge, is adding 480 megawatts this year and targets $4.4 billion in annualized revenue by end-2026 on Microsoft and Nvidia cloud contracts.
Nvidia’s data center revenue nearly doubled last quarter, and analysts see total revenue rising 81% this year to $391 billion as its Vera CPUs and Vera Rubin platform expand its AI hardware reach.
The thesis across all three names is that enterprise AI spending and scarce compute capacity could keep rewarding chip designers and data center builders well beyond the current boom.
With 40% of AI projects predicted to fail, is the $3 trillion data center boom heading for an inevitable bust?
As the AI gold rush accelerates, who truly pays the price for the industry's massive environmental and health footprint?
AI Data Center Explosion: Trillion-Dollar Investments, Power Challenges, and the Next Wave of Tech Innovation
Overview
The global AI infrastructure landscape is booming, driven by explosive growth in AI workloads across industries. This surge is creating an insatiable demand for advanced computing power and sophisticated data centers, with the market projected to reach nearly $200 billion by 2035. As computational needs escalate due to technologies like large language models and generative AI, continuous development and deployment of advanced data center infrastructure is essential. Significant investment is flowing into this sector, with leading chipmakers and hardware providers playing a pivotal role in meeting the rapidly increasing demands for robust and efficient AI infrastructure.