If major tech companies, excluding Nvidia, accelerate their in-house chip development with Google as a benchmark, who stands to benefit? It is Broadcom. Broadcom specializes in taking on in-house orders from these giants, and if more of them increase their in-house development ratio, Broadcom’s performance will not be poor.
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In the real world, tech giants have not halted investments and construction of AI data centers due to concerns over the AI bubble online. Therefore, AI infrastructure is more likely to slow down not because of market bubble worries, but due to limitations in funding and power supply, rather than coming to a complete standstill.
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Today, market sentiment has improved somewhat with the recent US-China talks, Nvidia’s authorization to sell to Huawei, Google’s Gemini, and Bitcoin stabilizing. A close observation reveals that in the early stages of a sentiment shift, the market first chooses companies with solid performance and reliable growth logic, such as those in storage, while companies that merely make promises, like nuclear power and quantum computing, perform poorly. When funds are abundant and liquidity is overflowing, promise-making companies perform better; when sentiment is cautious and liquidity is poor, solid companies perform better.
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Thus, promise-making companies are suitable for taking profits at high sentiment peaks, as there will always be opportunities to re-enter during volatility. Amazon continues to expand its AI data centers for government clients, but the market is not fond of aggressive expansion, which instead proves that the demand for data centers remains strong in the future. However, data centers that do not generate profit cannot maintain a stable trajectory; they are more likely to be influenced by sentiment recovery and news from Amazon.
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[Amazon to Invest $50 Billion to Expand AI Infrastructure for US Government]
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On November 24, Amazon announced an investment of $50 billion to expand its AI and supercomputing capabilities for US government customers through Amazon Web Services (AWS). The investment will commence in 2026, building data centers equipped with advanced computing and networking technologies, adding nearly 1.3 gigawatts of AI and supercomputing capacity in the AWS Top Secret, AWS Secret, and AWS GovCloud (US) regions.
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Federal agencies will gain broader access to AWS’s comprehensive AI services, including…
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(The following discusses some matters related to Amazon and Nvidia’s cloud services; scan the code to view the full text…)
