Ben Powell, the chief investment strategist for the Asia-Pacific region at BlackRock Inc., predicts that the current wave of capital investment in artificial intelligence (AI) infrastructure is far from its peak.

AI Capex Boom Favors Chipmakers, Suppliers

Powell, on the sidelines of the Abu Dhabi Finance Week, highlighted that the suppliers of AI “picks and shovels” such as chipmakers, energy producers, and copper-wire manufacturers are the primary beneficiaries of the ongoing capital influx, reported CNBC.

He noted that AI-driven capital spending is accelerating with no signs of easing, as major tech firms race fiercely for dominance in what they view as a winner-takes-all battle.Powell added that major tech companies are only beginning to tap credit markets to finance the next wave of AI growth, signaling that even more capital is on the horizon.He said "the money is very, very clear," adding that BlackRock expects the broader capex boom to continue.

Powell said the hyperscalers are acting as ...