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7 mega-cap stocks to own on sustainable data center spending - CFRA
March 26, 2024 4:00 PM EDTAnalysts at CFRA Research highlighted seven mega-cap stocks they see as best positioned to benefit from a "decade-long AI boom."
In a research note to clients, the firm explained that they believe capex spending from the major cloud providers is poised to rebound over 25% in 2024, with low-teens growth attainable thereafter.
"We view improving free cash flow (FCF) and profitability as major reasons why the sudden surge in data center spend is sustainable, despite much angst about that being the case," the firm wrote.
CFRA added: "Motivating factors that will cause cloud players to spend... More
