Summary

• Hyperscaler capex is approaching $700 billion in 2026, up more than 60% in a year, and most of it flows into chips, networking, and memory.
• AI spending still runs well below past technology cycles as a share of GDP, which leaves the build out room to keep growing rather than roll over.
• Longer term estimates point to trillions in AI infrastructure needed by 2030, suggesting the cycle is closer to its middle than its end.
• Valuations are not cheap and the ride will be volatile, so the capex guidance from the largest cloud spenders is the key signal to watch from here.
• In this article I show you my top 3 picks in the AI infrastructure build-out space.

For the better part of last two years, capital was flowing into AI infrastructure build-out. Today, you see AI everywhere, in the news, on Bloomberg, on YouTube, in your Google search...etc. The worst part of it is, that it starts to smell a

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