Investors eye chip makers and REITs as AI data-center spending surges

The rapid expansion of AI services is forcing major cloud providers to accelerate data-center construction, generating a surge in spending that outpaces the supply of essential semiconductor components. Experts advise investors to target firms that build the equipment used to fabricate chips, highlighting Applied Materials, Lam Research and Marvell Technology as key beneficiaries of the current capex wave. Meanwhile, data-center REITs that own densely connected, climate-controlled properties in metropolitan areas stand to capture rising demand as AI models move from training to everyday inference.

These REITs also offer tax-efficient dividend structures for investors. While the sector’s growth is robust, analysts caution that rising interest rates and potential over-capacity could pose risks to both equipment makers and property owners. Nonetheless, the overall trajectory suggests a long-term expansion of the AI-driven data-center ecosystem.