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One of the greatest challenges for artificial intelligence stocks is that it’s an expensive business. Hyperscalers like Amazon (AMZN), Alphabet (GOOG) (GOOGL), Microsoft (MSFT), and Meta Platforms (META) are spending $700 billion this year on AI infrastructure to create the computing capacity needed to meet an ever-increasing demand.
That strain is also felt by companies like Super Micro Computer (SMCI), which recently announced it was seeking $7 billion in financing to support an AI server backlog of $39 billion. The announcement drew concern among both analysts and investors, and the stock is down sharply.
