Nvidia and AMD look set to ride a huge wave of growth as AI spending is expected to explode in the coming years.
Citigroup just put a number on it and forecasted that nearly $3 trillion is set to be poured into AI infrastructure by 2029.
Nvidia clearly leads the pack with its powerhouse chips powering everything from data centers to AI research. AMD isn’t far behind, pushing hard to grab more ground with its own AI tech.
These companies aren’t just riding a trend; they’re shaping the future of AI, and investors are taking notice as the race heats up.
Big tech bets massive on AI
Citigroup just updated its forecast for AI spending, and the numbers are jaw-dropping.
They now expect the biggest tech companies to pour over $2.8 trillion into AI infrastructure by 2029, up from their previous $2.3 trillion estimate.
This surge is mostly thanks to hyperscalers like Microsoft, Amazon, and Google throwing massive dollars into building out their AI capabilities.
The AI boom really took off after ChatGPT hit the scene in late 2022, and companies are racing to keep up by expanding data centers and upgrading tech.
What’s wild is how much power and money this requires, an extra 55 gigawatts of power capacity globally by 2030, with the US alone needing $1.4 trillion of that spend.
Because setting up this infrastructure is crazy expensive, think $50 billion for just one gigawatt of compute power, these companies are borrowing heavily to stay ahead.
And it’s not just hype; companies like Eli Lilly and Hitachi are already showing that AI can deliver real results. The Citi report highlights how deep and wide this AI investment wave is reaching, with tech giants betting big on AI’s future.
Nvidia, AMD set to gain as AI chip battle heats up
Nvidia and AMD are front and center when it comes to the big AI spending wave Citigroup is talking about.
Nvidia remains the clear heavyweight, dominating the AI chip market with its tech powering most of the world’s leading AI projects.
Citi recently bumped up Nvidia’s price target to $210, pointing to strong demand from governments and enterprises betting big on AI. Nvidia’s new chips, like the Blackwell series, keep it ahead of the pack, even though competition is heating up.
On the flip side, AMD is making solid inroads with its AI GPUs, winning key clients like Amazon and Meta. While it faces some export restrictions and stiff competition, its AI revenues are expected to jump sharply in the next couple of years.
Analysts see AMD as a promising player but remain cautiously optimistic, pricing in the hurdles it faces.
Overall, both Nvidia and AMD are riding this trillion-dollar AI boom, and their stocks are reflecting the excitement and potential of where AI is headed next.
Investors are watching closely as these chipmakers lead one of the most significant tech shifts in years.
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