Data Center Spending Is Poised to Surge 400%: This Is the Only Chip Stock to Buy Now

The demand for data center capacity, especially on servers capable of running artificial intelligence (AI) workloads, has shot up remarkably over the past three years, and spending to build out the world's cloud computing infrastructure has soared as a result. That spending isn't going to slow down anytime soon, as the demand for cloud computing capacity remains well ahead of supply.AI chip bellwether Nvidia recently predicted that data center capital spending is likely to grow at an annualized rate of 40% through 2030, landing between $3 trillion and $4 trillion by the end of that period. That would be a big jump from this year's estimated data center capex of around $700 billion.If data center capex is indeed going to surge by around 400% in the next five years (based on the midpoint of Nvidia's 2030 estimate), chip stocks such as Nvidia could sustain terrific growth. However, if you could buy only one semiconductor stock to capitalize on this boom, I would recommend buying ASML Holding (NASDAQ: ASML).Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool