The quarterly performance of Nvidia Corp (NASDAQ:NVDA), Broadcom Inc (NASDAQ:AVGO), and Micron Technology, Inc (NASDAQ:MU) adequately reflects that the artificial intelligence wave is in no mood to slow down in the near term.
Hyperscalers, including Microsoft Corp (NASDAQ:MSFT), Google parent Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL), Amazon.Com Inc (NASDAQ:AMZN) and Meta Platforms Inc (NASDAQ:META) remain aggressively invested in their artificial intelligence ambitions. The U.S. and China’s key rate cuts also added an additional tailwind for the capital-intensive industry.
Microsoft committed 14.7 billion Reais ($2.70 billion) over three years to Brazil’s cloud and artificial intelligence (AI) infrastructure, according to a Reuters report.
Also Read: Micron’s AI-Driven HBM Demand and Data Center Growth to Fuel Stock Upside, Analysts Say
The company’s ConectAI program will train 5 million people with AI skills over the next three years. Microsoft already has two Azure regions: one in São Paulo state, which it launched in 2014, and another in Rio de Janeiro, which it launched in 2020.
Earlier this week, Microsoft earmarked $1.3 billion over the next three years to drive Mexico’s AI infrastructure and initiatives, including training 5 million people. Microsoft also collaborated with BlackRock, Inc (NYSE:BLK) and other partners, forging a fresh $30 billion investment fund to tap the AI wave.
Google is eyeing a $3.3 billion investment in South Carolina to build two new data centers. The search engine giant’s plans included two new data center campuses in Dorchester County and expanding its existing data center campus in Berkeley County, Reuters cites the South Carolina governor’s office as saying.
Alphabet committed $2 billion to the Dorchester County facilities, potentially creating 200 new operational jobs. According to Reuters, the company also earmarked $1.3 billion for Berkeley County.
Another positive update for the industry is the report indicating struggling chipmaker Intel Corp (NASDAQ:INTC) and the U.S. government are trying to finalize the $8.5 billion in direct funding for the chipmaker before the end of the year.
Therefore, Intel’s exploration of stake sales to companies like Qualcomm Inc (NASDAQ:QCOM) could also disrupt its chances of bagging the subsidy over antitrust grounds. Intel had already faced Senator scrutiny over its cost-cutting measures as the subsidy aims to create additional U.S. jobs.
Semiconductor ETFs VanEck Semiconductor ETF (NASDAQ:SMH) and iShares Semiconductor ETF (NASDAQ:SOXX) gained 5%-6% in the last 5 days.
Price Actions: INTC stock is up 1.21% to $24.21 premarket at last check on Friday.
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This article Microsoft, Google, Meta Pave Path to AI Expansion, Nvidia and Broadcom Set to Reap Benefits originally appeared on Benzinga.com
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