Alphabet and Amazon Are Spending $420 Billion on Infrastructure. These 2 Stocks Are Primed to Cash in on It.

Amazon and Alphabet are two of the biggest spenders in artificial intelligence (AI). At the midpoint, Amazon expects to spend $220 billion on capital expenditures while Alphabet projects about $200 billion. That means more growth for many companies, especially those supplying the computing hardware.

Two that I think are primed to benefit more than most are Nvidia (NASDAQ: NVDA) and Micron (NASDAQ: MU). Both companies are in a great position to deliver monster growth over the next few years, and I think they make for excellent investments now.

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Nvidia

AI demand has made Nvidia the world's largest company for a reason. There is incredible demand for its GPUs and the products that support them, and with Nvidia GPUs being the industry standard, cloud computing providers like Amazon and Alphabet are essentially required to buy from them. With both companies spending more than they anticipated at the start of the year, Nvidia is primed to benefit.

However, it's doing pretty well as-is.

We'll hear more from Nvidia later this month when it reports its fiscal second-quarter results, but in Q1, Nvidia delivered strong 85% revenue growth. That doesn't seem possible for a company with a $5 trillion market cap, but that's what it's delivering. 2026 isn't the end, either. Alphabet told investors during its Q1 conference call that there will be a significant increase in 2027 spending levels compared with 2026. That shows up in analyst estimates for Nvidia, as they project next fiscal year's revenue growth will be around 43%.

That shows just how well positioned Nvidia is to take advantage of this new wave of AI spending, and with the stock priced at 24 times forward earnings, it looks like a solid value.

NVDA PE Ratio (Forward) data by YCharts

Nvidia is poised to deliver outsize growth over the next few years, and I think investors should be loading up on shares.

Micron

Micron operated in the memory chip industry, which was specifically called out by Amazon as the reason for its increased capital expenditures guidance. This reflects a reality many already know: Memory prices have gone through the roof.

Demand for memory chips far outpaces supply, which has resulted in the price of memory skyrocketing. One of Micron's peers, Sandisk, informed investors during its last earnings report that two-thirds of its revenue growth came from price increases. As long as there is more demand than supply, this trend will likely persist.

Micron's management team also commented on the shortage and expects the market to remain tight beyond 2027. That leaves a lot of time for Micron to make a boatload of money, and makes it a stock worth considering now. After all, the market hasn't priced in any of its fiscal year 2027 growth (ending August 2027) yet.

MU PE Ratio (Forward 1y) data by YCharts

At just 5.6 times projected 2027 earnings, Micron looks like a very cheap stock primed to explode higher. Right now, the market is a bit skeptical of what the memory chip market will do in the near term, but investors already have several clues that current market conditions will last through at least the end of 2027.

That leaves plenty of time for investors to earn a nice return on Micron stock, and if data center demand remains rampant beyond 2027, there could be a case for buying and holding Micron for several years. Time will tell how that pans out, but as of now, it looks like a solid stock to buy and hold.

Keithen Drury has positions in Alphabet, Amazon, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.