Big tech companies are set to spend over $300 billion on AI infrastructure this year, with companies like Alphabet, Amazon, and Microsoft leading the charge. Nvidia is a big beneficiary, seeing a 56% jump in data center chip sales. Microsoft has a $368 billion backlog, showing strong long-term growth potential.

Alphabet, Amazon, and Microsoft all have healthy backlog growth for their cloud computing platforms, with Microsoft leading the pack with a $368 billion backlog. Azure remains a key growth driver for Microsoft, with strong demand for its AI services. Long-term commitments put Microsoft in a strong position for future growth.

Investors may need to pay a premium for Microsoft stock, with a forward P/E ratio of 32. However, with a massive pipeline of long-term growth ahead and a leading position in cloud computing, it could be worth the investment. Microsoft’s AI services and enterprise software continue to drive growth, with strong commitments from commercial customers.

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Read more at Nasdaq: Meet the Artificial Intelligence (AI) Stock With $368 Billion in Revenue Coming Down the Pipeline