Race for AI Data Centers: Who Benefits from New Investments?

Artificial Intelligence (AI) and its application in data centers is currently highly favored on Wall Street. Companies from various industries are striving to integrate AI technologies to remain competitive. Particularly in the spotlight is Equinix, a leading company in the data center sector, which has recently entered into a partnership with the sovereign wealth fund GIC from Singapore and the Canada Pension Plan Investment Board. The goal of the cooperation is to raise more than $15 billion to expand the presence of hyperscale data centers in the U.S. These gigantic centers are known for their enormous network capacity and often consume as much energy as large cities or small countries. In another groundbreaking move, the U.S. government has announced an investment of around $100 million in the development of sustainable semiconductor materials using Artificial Intelligence. This initiative is part of a broader $52 billion funding program aimed at boosting semiconductor production in the U.S. The funds are intended to benefit universities, national laboratories, and the private sector to advance automated AI-supported experiments for sustainable semiconductor manufacturing. The goal is to shorten the development times for new, resource-efficient semiconductor materials. KLA Corporation, a company providing process control and yield management solutions for the semiconductor industry, is sensing the changes in the market. Cantor Fitzgerald recently revised its investment forecasts for wafer manufacturing facilities downward and expects that investments in 2025 and 2026 will be lower than previously predicted. For KLA Corporation, this could have significant impacts on earnings. In the broader picture of promising AI stocks, KLA Corporation ranks 25th. Although the company has potential, investors believe that other AI stocks could offer higher returns in a shorter period.