Nvidia's recent memo addressing criticism has cast a spotlight on the sustainability of the AI boom, causing investor uncertainty. This creates a potential opening for companies in adjacent, more stable sectors like data center infrastructure and enterprise cloud services that support the AI ecosystem.
Published on November 27
As AI scrutiny intensifies, smart money is shifting to the companies that build and maintain the essential infrastructure powering the entire digital revolution. These are the picks and shovels of the AI boom.
Whilst pure-play AI stocks face volatility, these foundational companies offer more stable exposure to AI growth through essential data centres, cloud services, and enterprise infrastructure that won't disappear overnight.
Whether AI soars or faces setbacks, the demand for data storage, cloud computing, and digital infrastructure will only grow. These companies are positioned at the centre of our increasingly digital world.
With scrutiny mounting on pure-play AI companies following Nvidia's recent memo addressing criticism, we're focusing on the essential infrastructure that powers the AI revolution. These companies provide the foundational data centers, cloud services, and digital infrastructure that AI applications depend on, offering potentially more stable exposure to AI growth.
This group represents the backbone of the digital economy - from data center operators to cloud service providers and enterprise software companies. These businesses benefit from the long-term demand for data management and computing power, regardless of short-term AI market volatility. They offer a more defensive approach to AI investment.
Each company was handpicked by professional analysts for their critical role in supporting AI and cloud computing infrastructure. As investors seek more tangible, stable investments amid AI sector uncertainty, these foundational technology providers could benefit from their essential position in the digital value chain.
This basket's total market capitalisation is $208.97B and is anchored by several very large-cap constituents, giving it a predominantly large-cap profile.
DLR: $54.59B
NET: $69.00B
STRL: $10.44B
Get the full story on this Basket. Read our detailed article on its risks and potential.
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Part of Exinity Group 2015, serving over a million customers globally.
Earn 6% AER on uninvested cash with daily interest payments.
Disney is suing the FCC to block an early license review of its ABC stations, arguing the move is politically motivated retaliation against its news coverage. This unprecedented legal battle highlights the growing regulatory risks for traditional broadcasters and underscores the structural advantages of unregulated digital streaming platforms.
SK Hynix has unveiled a record-breaking 40 trillion won share buyback fueled by soaring demand for its AI memory chips. This historic capital return creates a compelling investment theme centered on high-bandwidth memory producers and the specialized equipment manufacturers that enable their advanced production.
Home Depot's recent earnings beat highlights consistent consumer spending on smaller household repair and maintenance projects. This ongoing trend presents promising opportunities for various home improvement retailers and building material suppliers.
+3
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CLOUDFLARE INC
NET
Current Price
$276.62
Offers a global connectivity cloud that provides security and performance for applications, which is vital for delivering AI services reliably and sec...
Offers a global connectivity cloud that provides security and performance for applications, which is vital for delivering AI services reliably and securely.
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On average, analysts expect assets in this group to grow 29.09% over the next year.
12 of 12 assets in this group are rated Buy by professional analysts.
Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitiv Ltd.
If you invested across these assets:
In 12 months it might be worth:
+29.09%
