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Barclays lays out its top AI picks amid this market downturn
The bank sees annual AI infrastructure spending from Western hyperscalers and AI labs surpassing $1 trillion before peaking in 2028
Here are the picks:
$NVDA Nvidia: Barclays highlights Nvidia for its leadership in AI infrastructure through its Blackwell and Rubin GPU platforms, with management saying it has visibility into more than $1 trillion in related orders from 2025 to 2027.
$MSFT Microsoft: Barclays includes Microsoft for its AI infrastructure exposure through Azure, its proprietary Maia accelerators and Cobalt CPUs, plus continued deployment of NVIDIA AI systems across its data centers.
$GOOG Alphabet: Barclays sees Alphabet as a core AI pick because of its TPUs, its internal AI capabilities, and its growing external cloud AI offering through Google Cloud.
$META Meta: Barclays highlights Meta for its development of in-house AI silicon through MTIA and its broader push to expand AI infrastructure capacity.
$AMZN Amazon: Barclays includes Amazon due to AWS’s custom AI chips, Trainium and Inferentia, which position it as a major AI infrastructure player focused on price-performance.
$AMD AMD: Barclays sees AMD as a key AI name because of its Instinct GPUs, EPYC CPUs, and growing role in data center training and inference infrastructure.
$AVGO Broadcom: Barclays highlights Broadcom for its exposure to hyperscaler AI spending through custom AI accelerators, XPU design services, and networking silicon.
$BABA Alibaba: Barclays includes Alibaba for its AI compute ambitions, including proprietary chips and expanding cloud AI capabilities.
$ARM Arm: Barclays sees Arm as essential because its architecture underpins much of hyperscaler custom silicon, including chips used across major AI infrastructure platforms.
$TSMC Taiwan Semiconductor Manufacturing: Barclays highlights TSMC as a foundational AI pick because it manufactures the world’s most advanced AI chips and provides critical CoWoS packaging capacity.
Other names Barclays also highlights:Intel, Marvell, Qualcomm, and Tencent.
