Demand for AI computing power could push data center spending to nearly $7 trillion by 2030.
It's the massive effort needed to build the hardware and support needed to enhance increasingly sophisticated artificial intelligence and provide it at a global level where billions of people can access it.
Global technology needs will require $6.7 trillion in data center spending by 2030, according to a study by McKinsey & Company. However, these investments lay the foundation for the next era of global innovation that revolutionizes existing industries and creates new industries.
Some major companies have already experienced significant growth due to AI trends, and players in key AI infrastructure spaces still have long runways, including semiconductors, cloud computing and networking.
Below are five top stocks to buy and hold for the next wave of AI innovation.
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NVIDIA: Data Center AI Chip Leader
Inside these huge AI data centers there are usually thousands of AI accelerator chips. nvidia (NVDA) -0.42%)). The company's graphics processing units (GPUs) are the only ones that can utilize their own CUDA platform, and contain an array of tools and libraries for developers to build and deploy applications that use hardware efficiently. The effectiveness of CUDA, and its popularity with developers, helped NVIDIA gain an estimated 92% share of the data center GPU market.
The company remains in its winning position as it progresses from its previous hopper architecture to its current Blackwell Chips, and plans to launch its next-generation architecture with a CPU called Vera and a GPU called Rubin next year. Analysts expect Nvidia's revenue to rise to $200 billion this year and $251 billion in 2026.
Amazon and Microsoft: Win with AI through the cloud
As AI software is primarily trained and driven through large cloud data centers, major cloud infrastructure companies are a key part of the formula. They are also Nvidia's biggest clients. Amazon (amzn 0.97%)) Web Services (AWS) has long been the world's leading cloud platform, covering around 30% of today's cloud infrastructure market. Through the cloud, businesses can access and deploy AI agents, models and other software across the enterprise.
AWS sales increased 17% year-on-year in the first quarter, and we need to maintain a similar pace. Goldman Sachs We estimate that AI demand will drive to $2 trillion by 2030 across the entire cloud computing industry. Amazon earns a significant portion of it. As AWS is Amazon's main profit center, the company's ultimate profits should also flourish.
It's a similar theme Microsoft (msft -0.33%)). Its Azure is the world's second largest cloud platform with a market share of around 21%. Microsoft stands out from the pack for its deep connections with millions of corporate clients. Companies rely on the range of Microsoft's hardware and software products, including enterprise software, Windows operating systems, and productivity applications such as Outlook and Excel.
Microsoft's vast ecosystem provides a vast customer base to create sticky revenue streams and cross-sell AI products and services. Microsoft has also invested in Openai, the developer behind ChatGpt, and has collaborated extensively, but the relationship becomes somewhat tense as Openai becomes more and more successful.
Anyway, Microsoft's massive footprint across AI and larger technology spaces makes it easier.
Arista Networks and Broadcom: Network Technology that Supports AI
Within a data center, huge clusters of AI chips need to communicate and collaborate. This requires massive data transfers at extremely high speed. Arista Network (anet) -0.06%)) We sell high-end networking switches and software that will help you achieve this. The company is already thriving in data centers during this golden age, including Microsoft and Meta Platformwhich happens to be one of the highest spenders in AI infrastructure.
Arista Networks could continue to benefit from the growth of AI investments as these increasingly powerful AI models consume an ever-growing amount of data. Analysts expect Arista Networks to generate $8.4 billion in sales this year ($7 billion last year), and next year it will be $9.9 billion, with a 19% yearly long-term revenue growth of around $9.9 billion.
It is firmly woven into this same theme Broadcom (avgo) -1.12%))specialized in the design of semiconductors used in networking applications.
For example, Arista Networks utilizes Broadcom's Tomahawk and Jericho Silicon on network switches built for data centers. Broadcom's AI-related semiconductor sales rose 46% year-on-year in the second quarter.
More specifically, Broadcom is becoming a more prominent role player in AI infrastructure. We designed a custom accelerator chip (XPU) for AI model training and inference. By 2027, they attacked partnerships with at least three AI customers who each thinks to deploy a cluster of 1 million accelerator chips. Broadcom's Red-Hot AI Momentum estimates the company will increase by 23% per year over the next three to five years.
Randi Zuckerberg, a former director of market development, Facebook spokeswoman and sister to Metaplatform CEO Mark Zuckerberg, is a member of Motley Fool's board of directors. John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of Motley Fool's board of directors. Justin Pope is not in a position with any of the stocks mentioned. Motley Fool has positions and recommends Amazon, Arista Networks, Goldman Sachs Group, Meta Platforms, Microsoft, and Nvidia. Motley Fool recommends Broadcom and the following options are recommended: A $395 call at Microsoft for January 2026 and a $405 call at short term Microsoft for January 2026. Motley Fools have a disclosure policy.
