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BlackRock Says AI Capex Boom Still Building, Backs ‘Picks and Shovels’ Plays

The firm points to a winner-takes-all push by cloud giants that is set to channel fresh borrowing toward suppliers of compute, power plus materials.

Overview

  • Ben Powell of BlackRock told CNBC the AI infrastructure investment wave shows no sign of peaking, calling it a continuing capex deluge.
  • BlackRock is prioritizing hardware, energy producers and materials makers such as copper-wire suppliers as the clearest beneficiaries of the buildout.
  • Powell said hyperscalers have only begun tapping credit markets, signaling more borrowing that could extend the spending cycle.
  • S&P Global estimates data-center electricity demand could nearly double by 2030, with grid operators working to accommodate new facilities.
  • Context for investors includes Nvidia briefly topping a $5 trillion market cap, heavy annual AI budgets at Amazon and Meta, and Reuters reporting that OpenAI is preparing for a potential IPO.