The AI Trade Is Still On: Wall Street Sees Big Tech Spending as Positive for Semiconductor Stocks The recent surge in spending by Big Tech on artificial intelligence infrastructure has sent shockwaves through the semiconductor market, leaving investors both thrilled and perplexed.
Alphabet's massive capital expenditures have driven up shares of memory makers Micron Technology, SK Hynix, and Sandisk. However, some strategists caution against a blanket buy across the entire sector.
Gil Luria of D. A. Davidson makes a distinction between two types of semiconductors: those directly benefiting from AI spending and those struggling to keep pace.