Traders are flocking to stocks benefiting from AI data center spending as hyperscalers mobilize a $600 billion capex blitz across infrastructure projects.
The biggest buildout in tech history is underway, and traders are placing their bets accordingly. Stocks tied to AI data center construction are surging as hyperscale cloud providers collectively guide for between $600 billion and $630 billion in combined capital expenditures for 2026, with roughly 75% of that budget earmarked for AI-related infrastructure. These revised spending forecasts represent a significant upward shift from prior predictions.
When Amazon plans to invest about $200 billion and Alphabet guides for roughly $175 billion to $185 billion, the companies selling shovels during this gold rush tend to do exceptionally well. Vertiv, which manufactures the power and cooling systems essential to prevent data center overheating, has been one of the biggest winners, with its stock up over 70% year-to-date. The company reported order growth of 252%, building a backlog of $15 billion, and raised its 2026 revenue guidance to between $13.5 billion and $14 billion, with adjusted earnings per share projected at $6.30 to $6.40.
Much of the demand spike stems from the industry's shift toward high-density server racks that pack more compute power into less space—but at the cost of generating enormous amounts of heat. Advanced cooling systems are no longer optional. Other major data center stocks attracting trader attention include Digital Realty, with a market cap of around $66 billion, and Equinix at roughly $100 billion. On the hardware side, Nvidia sits at approximately $5 trillion in market cap, while Dell hovers around $252 billion.
AI data centers are projected to consume up to 70% of global memory chips by 2026. Companies like Micron and TSMC sit squarely in the path of this demand wave, manufacturing the memory and processors that enable AI workloads. South Korea's announced plan to invest over $1 trillion in semiconductors and AI data centers boosted shares in suppliers like Vertiv by approximately 7% on the announcement alone.
The hyperscalers' committed spending levels provide multi-year revenue visibility for their suppliers. Vertiv's $15 billion backlog represents roughly a full year of revenue at its current guidance range. However, concentration risk is real. Amazon and Alphabet alone account for a combined $375 billion to $385 billion of the projected capex. With AI data centers projected to consume 70% of global memory chips, any disruption to chip manufacturing could simultaneously hurt data center buildout timelines and spike component costs. Investors positioned in this theme must watch TSMC's capacity expansion plans and US-China trade dynamics as closely as they monitor earnings reports.