AI investment 2 trillion dollars, winners Nvidia and TSMC
British investor James Anderson 21Big Tech 20era is coming to an end, and he said that a small number of semiconductor and equipment companies will be the winners in the AI era. He explained that investment by hyperscalers in data centers is concentrating the benefits in the semiconductor supply chain.
James Anderson 21Big Tech 20era has come to an end. He said that a small number of semiconductor companies, including Nvidia, will be the winners in the AI era. He expressed this view.
Anderson pointed out that platform companies such as Google, Meta, Amazon and Microsoft are competing to invest trillions of dollars in AI. He said this is weakening the cash flow structures of platform companies. He noted the cost burden of the investment race.
He said the gains from the AI investment race will be concentrated among a small number of semiconductor and equipment companies, such as Nvidia, TSMC and ASML. He explained that these companies supply essential hardware. He named the companies directly.
Anderson said the foundations of platform companies had collapsed. He also assessed that there was no clear path back to a structure with low capital expenditure and high cash flow. He mentioned these two points together.
He also assessed that the market structure centered on the group known as Apple, Microsoft, Amazon, Alphabet, Meta, Nvidia, and Tesla was changing. He said Silicon Valley companies were competitively pouring funds into the race for AI leadership. He noted the structural change.
Morgan Stanley estimated that hyperscalers would spend about 2024starting in 2027through 2trillion dollars on data center construction alone. The article quoted this estimate. It presented the scale of the related investment.
It reported that investors were gravitating toward semiconductor and supply-chain companies rather than traditional software companies. The Philadelphia Semiconductor Index (SOX) rose by 18% over the past month. It reported that the index had risen by 57% so far this year.
Sources: 뉴시스 경제
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