Nvidia Says Big Tech Will Spend $1 Trillion in Capital Expenditures in 2027: 3 Stocks to Buy If It's Right

Nvidia (NASDAQ: NVDA) dropped a major bombshell during its Q1 earnings. Management expects data center capital expenditures to reach $1 trillion in 2027, which keeps the entire industry on track to achieve a massive $3 trillion to $4 trillion annual spend by 2030. That's a huge growth prediction, but Nvidia is already probably receiving orders for 2027 products that allow it to back this projection. That's major news, but Nvidia isn't the only one affected by it.

I've got three stocks that are no-brainer buys today if Nvidia is right on its $1 trillion call, and investors should consider scooping them up right now.

Image source: Getty Images.

1. Nvidia

If $1 trillion in data center capital expenditures occurs in 2026, then Nvidia is clearly a buy in its own right. Nvidia is the leading artificial intelligence computing unit provider, and with the launch of its new Rubin architecture platform later this year, it has a built-in growth lever for generational change. Furthermore, as data centers are built out, there will be fewer costs devoted to land acquisition and construction, and more to the computing equipment that goes in the data center. That should boost Nvidia's revenue growth rate overall, even if Wall Street analysts project only 39% growth for the next fiscal year.

Analysts are not optimistic about underprojecting Nvidia's growth a year out. If Nvidia is right about its capital expenditure trajectory, its growth rate will likely be far higher, leading to impressive gains in 2026 and 2027.

2. Taiwan Semiconductor

Nvidia only designs the chips that go into its devices; it doesn't make them. Taiwan Semiconductor (NYSE: TSM) handles most of the fabrication work, as it does with several of Nvidia's competitors. Taiwan Semiconductor is the ultimate neutral investment in the AI space, as it is only a manufacturer. At the same time, it won't see the peak gains of AI's best performer, but it will benefit from the overall rising tide of increased chip demand.

Taiwan Semiconductor expects its AI chip business to grow at nearly a 60% compounded annual growth ratefrom 2024 to 2029, and with data center capital expenditure expected to rise significantly again next year, that bodes well for the business.

At 26 times forward earnings, Taiwan Semiconductor isn't the cheapest stock around, but it's also not overly expensive considering its positioning in the AI build-out.

TSM PE Ratio (Forward) data by YCharts

Given the major impending AI growth, I think Taiwan Semiconductor is still a strong buy and a cornerstone for investors building an AI prototype.

3. Micron

Taiwan Semiconductor makes logic chips, which are a major component of Nvidia's GPUs. However, those devices also require memory chips, and Micron (NASDAQ: MU) is a key manufacturer. The memory chip market has been overwhelmed by demand from AI, and has practically sold out of all production capacity in 2026. In fact, Micron told investors that it can only meet half to two-thirds of medium-term demand. This low-supply and high-demand market has caused memory chip prices to skyrocket, leading to huge growth for Micron.

If data center capital expenditures take a major step forward in 2027, that will only increase the strain on the memory chip supply chain, as many of the efforts by memory chip producers to increase output won't be ready until later in 2027. That will keep memory chip prices elevated, allowing Micron to capitalize on the major growth. Right now, it's expected to triple its revenue. Next year, Wall Street analysts expect nearly a 60% growth rate -- all of which will allow investors to cash in on major memory chip demand via a Micron investment.

Keithen Drury has positions in Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Micron Technology, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.