This is how the $1 trillion AI Economy works:
1. NVIDIA sells the compute every AI system runs on.
2. Microsoft packages AI into software and cloud services for enterprises.
3. Amazon turns AI demand into sustained cloud and logistics monetization.
4. Alphabet (Google) creates AI demand through search and monetizes it through ads and cloud.
5. Meta Platforms uses AI to compound attention and extract more value per ad.
6. OpenAI sells intelligence directly as a product.
7. Oracle locks in enterprise AI workloads via Oracle Cloud Infrastructure (OCI).
8. AMD supplies alternative AI compute at scale.
9. Broadcom provides the silicon and networking that connects AI systems.
The mesmerizing visualization below tracks the flow of roughly $1 trillion in AI infrastructure investment since 2019, with projections expected to cross $4 trillion by 2032.
While these capital expenditure figures seem massive, they represent a small fraction of the $110 trillion global economy which is projected to grow to $130 trillion by 2030
When you consider that firms like McKinsey and PwC estimate AI will add $15 trillion to global GDP by 2030, the scale of this investment starts to look like a drop in the bucket.
The AI trade is far from over, and our strategy remains the same:
1. Own high-quality companies with strong balance sheets,
2. Avoid leverage (margin),
3. Holding period of years not months.
ps. Not financial advice. Keep learning and do your DD