3 Stocks to Take Advantage of $1 Trillion in 2027 Capital Expenditures

Key Points

• Nvidia is the primary AI computing unit provider, and is primed to cash in.

• Broadcom expects a huge ramp-up of custom AI chips in 2027.

• Sandisk will continue thriving as long as there’s a shortage of its primary product.

• 10 stocks we like better than Nvidia ›

In 2026, the market expects record-setting capital expenditures from the big four artificial intelligence (AI) hyperscalers. Some of these companies have already bumped up their guidance for 2026, but at the start of the year, this figure totaled $650 billion.

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That’s a ton of money being spent on data centers, and it’s being spread around to several different companies. However, 2026 is just the beginning.

Several estimates point toward capital expenditures rising each year through 2030, leading to several years of incredible growth for companies involved in the space. Next year, the build-out is expected to be even bigger, with Nvidia (NASDAQ: NVDA) informing investors that it expects $1 trillion in data center capital expenditures. Nvidia likely has more information regarding future demand than an individual investor, so it’s probably wise to give Nvidia’s projection some credence.

If the $1 trillion in data center capital expenditures comes about next year, there are several stocks that are primed to benefit. I’ve got three that I like, but there are countless more.

Image source: Getty Images.

1. Nvidia

Let’s start with the company that broke the news in the first place: Nvidia. Nvidia is by all accounts the industry leader in AI computing. The growth caused by all of the spending on AI data centers has propelled Nvidia to become the world’s largest company, but it’s far from done growing. Wall Street analysts expect Nvidia’s revenue to rise 81% in fiscal year 2027 (ending January 2027). Next year, they expect 41% growth. With Nvidia’s stock trading at 31 times trailing earnings, none of that growth is priced in stock today, and Nvidia looks like an average big tech company.

NVDA PE Ratio data by YCharts

That leaves plenty of room for monster upside, and makes Nvidia a no-brainer buy today.

2. Broadcom

Nvidia isn’t the only chipmaker that’s set to cash in on a huge expansion next year. Broadcom (NASDAQ: AVGO) is another company that’s involved in the space, and it’s taking a different approach. It makes custom AI chips, which are designed specifically for an end user. Some of Broadcom’s major clients include Alphabet, Meta Platforms, Anthropic, and OpenAI. All of these companies have custom AI chips that were designed with Broadcom’s help, and there is a ton of new growth expected to be realized in 2027.

Wall Street expects Broadcom’s revenue to grow 66% in fiscal 2026 (ending in November) and 62% in fiscal 2027, mostly due to the strength of its AI semiconductor business, which is expected to exceed $100 billion in revenue next year. This will lead to a booming stock price, making Broadcom an excellent stock to buy now before next year’s data center spending is realized.

Sandisk

Sandisk (NASDAQ: SNDK) has been an incredible performer over the past year. The stock is up about 700% so far this year, which may have investors wondering how Sandisk will rise even higher from here.

One critical part of data centers is long-term data storage. Nearly all data centers utilize solid-state drives (SSDs) for this purpose, and there is an industrywide shortage of these devices thanks to unprecedented AI demand. With data center spending expected to expand again in 2027, this pressure could continue.

Sandisk manufactures these devices, and because there is such a low supply, prices are soaring, which is boosting Sandisk’s results.

In the fourth quarter of fiscal year 2026 (ending June 2026), Wall Street analysts expect 336% revenue growth. For fiscal year 2027, the compabny is expected to grow its revenue 122%. That easily makes it the fastest-growing stock on this list. As long as there’s a shortage of SSDs in the marketplace, Sandisk’s revenue and profits will continue to soar, making it an easy stock pick to make with further data center spending coming.

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Keithen Drury has positions in Alphabet, Amazon, Broadcom, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Broadcom, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.