Hyperscalers spend on AI, boosting chipmakers’ cash flow
Big Tech companies are investing heavily in artificial intelligence, with $234 billion spent in capital expenditures this year.
This spending is driving growth for chipmakers, who are seeing increased demand for their products.
The semiconductor basket, including companies like Nvidia and Micron, is expected to keep more cash after paying bills, while hyperscalers like Amazon and Microsoft see falling free cash flow.