AI Infrastructure Stocks Thrive Amidst Rising Oil Prices
Rising oil prices in Europe are causing government bond yields to rise, making borrowing costs more expensive. Amidst this backdrop, companies linked to the ChatGPT and AI buildout are investing heavily in chips, software, and cloud tools that run these models.
Microsoft is one such company that stands out due to its strong AI connection through Azure AI and its partnership with OpenAI. The firm generates significant revenue from productivity and business processes, intelligent cloud, and more personal computing, with a market cap of around $3.68 trillion.
Cerebras Systems is another player in the AI infrastructure space that builds full rack AI compute platforms using its wafer scale engine. With a market cap of approximately $52 billion, it's already a significant player in supplying compute power for ChatGPT-style services.
Alphabet, parent company of Google, also has a strong link to the AI theme through its Google Cloud AI stack and Gemini large language models running on TPU and GPU infrastructure. With a market cap of over $4 trillion, it's one of the largest listed companies, using ad and services cash to fund heavy AI infrastructure spending.