AI INFRASTRUCTURE TRADE SURGES WITH TECH GIANT INVESTMENTS

Shares of companies providing infrastructure for artificial intelligence development have surged following a market dip earlier this year, fueled by increased spending from major technology firms. Amazon, Google, Meta, and Microsoft are projected to collectively invest $371 billion in Al data centers and computing resources in 2025, a 44% increase from the previous year.

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INVESTMENT OVERVIEW

The $371 billion in capital expenditures for 2025, reported by Bloomberg Intelligence, targets data centers, servers, and networking to support Al development. Amazon leads with a planned $100 billion, a significant rise from $78 billion in 2024, primarily for its Amazon Web Services cloud division. Google parent Alphabet has allocated $75 billion, exceeding analyst expectations of $58 billion, while Meta anticipates spending between $60 billion and $65 billion, up from $39 billion in 2024. Microsoft expects to invest $80 billion, though its spending growth rate is projected to slow compared to 2024's $56 billion.

The investment surge follows a market correction earlier this year, driven by concerns over competition from China's DeepSeek startup and global trade uncertainties. Investor confidence rebounded after President Donald Trump paused most tariffs announced in April, contributing to a rally that pushed the S&P 500 near its February high. The latest earnings season further solidified optimism, with tech giants confirming their commitment to Al infrastructure.

MARKET PERFORMANCE