It’s raining dollars in the artificial intelligence (AI) space. Hyperscalers are pouring in free cash flow – and even taking on debt – to build massive AI data centres. The top five hyperscalers have committed US$700 billion in capital expenditure (capex) on AI infrastructure in 2026 alone. That’s double the amount spent in 2025. So, where is all this money going?
Source: Getty Images
AI spending is poised to hit $700 billion
The hyperscalers’ AI spending is revenue for chip, energy, and networking equipment companies, and construction firms building data centres. The money trail is visible in their revenue growth, profits, and share price rallies. For investors, the golden rule is simple: follow the capital flow.
2 top stocks to buy to capitalize on this massive number
Micron Technology
AI data centres require several chips, from graphics processing units (GPUs) to memory chips, and networking switches that connect all parts for seamless computing speed. The triple-digit revenue growth AI spending triggered for Nvidia in 2023 and 2024 is now replicating for Micron Technology (NASDAQ:MU).
Micron is the only US-based memory chipmaker that builds the high-bandwidth memory (HBM) used in data centres and cloud networks. Only three companies make HBM, and all three are seeing an acute supply shortage of memory chips as growing spending on AI data centres drives demand.
The latest quarterly results of Micron showed its revenue growth triple as the average selling price for memory chips jumped 60–79%. This is just the beginning, as Micron has only catered to 50–66% of the customer demand. It has dedicated over US$25 billion in capex to boost capacity and is funding it with its US$11.9 billion operating cash flow (OCF) in the second fiscal quarter alone.
You can clearly see the dollars raining on Micron. Its stock has already quadrupled, but it still has more room for growth as the threefold revenue growth is backing the share price rally. Micron’s management stated that the current supply shortage is different from previous cycles due to secular AI demand and supply constraints.
Like Nvidia, Micron stock could see AI spending trigger two to three growth phases and sustain the share price when growth flattens.
Celestica
A Canadian tech stock riding the AI spending wave is electronics manufacturer Celestica (TSX:CLS). This stock even overtook Nvidia in the AI rally, surging 1,268% between November 2023 and November 2025. While Nvidia’s growth flattened after August 2025, Celestica’s stock rallied another 73% until February on the back of high orders. Its fourth-quarter revenue surged 44%, and adjusted earnings per share surged 70% year over year.
Celestica manufactures Ethernet switches, storage solutions, and networking chips in its Connectivity & Cloud Solutions segment. After the GPU demand, the demand for networking surged. NVIDIA reported a 263% jump in its networking and 58% surge in compute revenue in the fourth quarter.
Once again, the AI spending is clearly visible in revenue numbers. Celestica expects CCS revenue to grow another 50%. To meet demand, Celestica announced $1 billion in capex for new plants in Texas, Mexico, Japan, and Taiwan.
How long will this AI spending cycle last?
Investors fear that the AI spending bubble will burst and wipe out the valuations. Unlike past tech cycles, AI demand is secular and driven by automation, cloud computing, and hyperscaler expansion.
OpenAI and Anthropic are currently leading the AI application space, occupying all the AI compute capacity they can get. The current reality is that companies like Google or Amazon are ordering equipment for AI data centres, and a significant portion of that $700 billion is going to these suppliers.
Until capex growth slows, the AI spending cycle will continue to generate hypergrowth opportunities.
