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Dear Fellow Investor,
Three Solid Ways to Trade Explosive AI Capex Spending
Artificial intelligence is no longer a buzzword—it’s a full-blown capital expenditure supercycle.
While the early phase of the AI boom was largely about hype and experimentation, we’ve now entered a new era where companies are opening their wallets in a big way. And the numbers are staggering.
Just recently, Alphabet (Google’s parent company) increased its capital-expenditure forecast for the year to $85 billion, up from a previous estimate of $75 billion. But that’s just one piece of the puzzle.
Across the board, tech giants like Meta, Amazon, Alphabet, and Microsoft are collectively expected to spend over $320 billion on AI infrastructure in 2025—a massive leap from the $230 billion they spent in 2024. According to UBS, this figure could balloon to hundreds of billions of dollars annually in the years to come.
This spending spree is fueling growth across a wide range of sectors—from semiconductor makers to enterprise software companies to infrastructure-focused ETFs. Below are three powerful ways investors can tap into this AI capex boom.
Company: C3.AI (SYM: AI)
Price Target: $32+
Market Cap: ~$3.5 billion
C3.AI might not be as widely known as Nvidia or AMD, but it's become a key player in enterprise AI adoption. The company offers pre-built AI applications for industries like energy, defense, manufacturing, and financial services. Think of it as a plug-and-play solution for large corporations looking to implement machine learning at scale.
The stock has had a rollercoaster ride in recent years, but it’s been moving sharply higher since bottoming around $18 in April—recently climbing to the $30 range. Based on technical momentum and earnings strength, a short-term move to $32 or higher looks likely.
The company’s recent earnings beat was impressive:
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Q4 EPS loss of 16 cents, which beat expectations by four cents
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Revenue of $108.7 million, up 25.5% year over year, also topping estimates
More importantly, C3.AI extended its lucrative partnership with Baker Hughes through 2028. Management called it a “substantial tailwind,” citing over $500 million in total contract value from the relationship. This kind of long-term revenue visibility is rare in the AI space—and it makes C3.AI a unique way to play the enterprise adoption of artificial intelligence.
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Company: Advanced Micro Devices (SYM: AMD)
Recent Low: $80
Recent High: $180
AMD is one of the most explosive AI hardware plays on the planet.
Once considered a distant second to Nvidia in the GPU wars, AMD is now emerging as a serious competitor in the AI chip race—thanks in large part to its powerful new MI300 series of accelerators. These chips are being positioned as direct rivals to Nvidia’s high-end offerings, such as the H100.
AMD’s MI300X, in particular, is already being dubbed the most advanced AI chip on the market by some analysts. According to AMD Chair and CEO Lisa Su, the product is the company’s fastest-ramping chip in history, and demand has been “off the charts.”
Even more eye-popping is Su’s estimate that the AI data center chip market will reach $500 billion by 2028—up from her previous projection of $400 billion by 2027. That’s an enormous total addressable market, and AMD has clearly staked its claim.
Since April, AMD stock has more than doubled off its lows near $80. While the stock has had some short-term volatility, the broader uptrend remains intact, driven by massive AI-related demand and growing adoption of AMD’s chips in enterprise cloud deployments.
ETF: Global X Artificial Intelligence & Technology ETF (SYM: AIQ)
Expense Ratio: 0.68%
Top Holdings: Nvidia, Microsoft, Meta, Oracle, Palantir, Broadcom
For investors who prefer diversification and don’t want to chase individual high-volatility names, the Global X Artificial Intelligence & Technology ETF (SYM: AIQ) offers a smart way to ride the AI megatrend.
With 86 holdings, the ETF invests in companies that are leading or enabling the development of artificial intelligence. Its top positions include industry heavyweights like Microsoft, Nvidia, Meta Platforms, and Oracle, alongside rising players like Palantir.
The AIQ ETF gives investors:
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Broad exposure to AI infrastructure, cloud computing, semiconductors, and machine learning software
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A simple, one-click way to invest in AI’s long-term growth
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Risk reduction through diversification across sectors and company sizes
Since bottoming at around $31 in April, the ETF has surged to $45. If momentum continues and capital spending keeps ramping, we could easily see AIQ pushing toward $60 in the months ahead.
With its balanced exposure and thematic focus, AIQ is ideal for investors who want AI exposure but prefer a more measured approach than single-stock investing.
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