The trading of AI infrastructure stocks in the U.S. stock market has become active again, benefiting from the increased investment efforts of Technology giants.
AI infrastructure concept stocks are experiencing a significant increase after a sharp decline at the beginning of the year. This is due to the renewed investment from large Technology companies, which has boosted investor confidence in the Industry. Two stock portfolios tracked by Goldman Sachs have performed well: one group tracks stocks in AI data centers and electrical equipment, while the other tracks stocks of companies providing power to data centers. These two portfolios have risen 52% and 39% respectively since their low points in April. $Vertiv Holdings (VRT.US)$ Among them, a standout company has risen 94% since April 4. $Constellation Energy (CEG.US)$ Another company has increased by 75% during the same period.
Some of the largest Technology companies in the world include $Amazon (AMZN.US)$ 、 $Alphabet-A (GOOGL.US)$ 、 $Microsoft (MSFT.US)$ And $Meta Platforms (META.US)$ —— continue to invest heavily in the field of Asia Vets, which alleviates concerns about whether funds will continue to flow to those major AI infrastructure companies. According to Bloomberg Analyst Robert Schiffman, capital expenditure forecasted to support AI demand has increased by 16% since the beginning of the year.
Roundhill Financial CEO Dave Mazza stated: 'The Earnings Reports season has made it clear to investors that generative AI does not operate on hollow slogans, but on real materials — Copper, large-scale power, and so on.'
Last year, Stocks of AI infrastructure companies performed exceptionally well, as optimism about AI's commercial potential sparked a massive investment boom in data centers to support the development of projects like ChatGPT and Claude.
A strong start in 2025 soon collapsed due to fears of competition from DeepSeek and broader uncertainties in global Trade, leading investors to question whether billions of dollars in investments were worthwhile. Concerns that Technology giants like Microsoft were abandoning data center projects further exacerbated this sell-off.
When Trump announced a suspension of most of the tariff measures implemented in early April, investor sentiment overall improved. This news triggered a rise in the stock market, bringing the S&P 500 Index close to the historical high set in February. Moreover, the recent Earnings Reports season helped boost investor confidence, as large Technology companies indicated they would continue to invest in AI development. Among them, Meta indicated that the hundreds of billions of dollars in AI investment plans announced at the beginning of the year are still on track.
Schiffman wrote: "The largest mega Technology companies—Amazon, Alphabet, Microsoft, and Meta—are continuously increasing capital expenditures to meet future demand for artificial intelligence, leveraging their massive Cash reserves and the ability to access low-cost funding."
Meanwhile, recent corporate Trades indicate that investment is still ongoing. For example, Amazon plans to invest 10 billion USD in North Carolina to expand its data center facilities to support the development of AI and cloud computing technologies.
Of course, if the trade war heats up again and raises concerns that a slowdown in global economic growth will lead companies to reduce their investments in AI, investor confidence in AI could be shaken once more.
Max Gokhman, Deputy CIO at Franklin Templeton Investment Solutions, stated: "If the economy falls into recession, profits will be pressured, and businesses will be forced to lay off employees and cut spending on AI." He added that this scenario is not his base case expectation.
In addition, fierce competition from DeepSeek is noteworthy. In January of this year, the company competed with systems from much larger American development companies using its self-developed system, while its R&D costs were only a fraction of those of its competitors, shocking the entire AI field. This Chinese startup reported last month that its upgraded AI model outperformed previous versions in mathematics, programming, and general logical reasoning, while also making fewer errors.
However, currently, enthusiasm for AI infrastructure companies is high, and the support from the White House further provides additional momentum. Earlier this year, Trump launched the "Stargate" project, a data center built by OpenAI that includes some of the largest Technology companies in the U.S. and plans to invest 500 billion USD in AI infrastructure over the next four years.
Gokhman stated: "The demand for AI infrastructure is growing increasingly. "
Editor/joryn
