Key Takeaways:
- Leading data center operators are expected to spend over $500 billion on capital expenditures in 2026, with this number potentially increasing to $7 trillion by 2030.
- Advanced Micro Devices (AMD) and Hut 8 are well-positioned to benefit from the growing demand for AI infrastructure, with both companies expected to reach new highs in 2026.
- AMD has a strong growth trajectory, with a 36% year-over-year revenue increase in the third quarter and a long-term outlook of 35% compound annual growth in revenue.
- Hut 8 has a significant deal with Anthropic to supply data center capacity, with a potential value of up to $17.7 billion, and a long-term development pipeline of up to 8.6 gigawatts of data center capacity.
Introduction to the Growing Demand for AI Infrastructure
The need for artificial intelligence (AI) infrastructure is growing rapidly, with top technology companies delivering excellent returns to investors over the past few years. As noted in the original article, "leading data center operators are estimated to spend more than $500 billion on capital expenditures in 2026, according to Goldman Sachs. However, over the long term, this spending could increase substantially." This growing demand is driven by the increasing need for compute power, with research from McKinsey showing that data centers may require $7 trillion to meet demand by 2030. As the article states, "this is very bullish for Advanced Micro Devices (AMD) and Hut 8 (HUT 5.06%)."
Advanced Micro Devices: A Leader in AI Infrastructure
Advanced Micro Devices (AMD) had a breakout year in 2025, with the stock climbing 77% and a significant portion of those gains following a deal with OpenAI in October. As the article notes, "AMD is poised for another big year in 2026, with strong growth across its business, including data center, gaming, and consumer processors." The company’s revenue grew 36% year over year in the third quarter, while adjusted net income increased 31%. AMD has several catalysts that are expected to drive growth in 2026, including the rollout of 50,000 AMD Instinct MI450 graphics processing units (GPUs) by Oracle and the supply of MI450 chips to OpenAI in the second half of 2026. As AMD’s CEO stated, "we expect this agreement to generate a cumulative $100 billion in revenue over the next several years."
Hut 8: A Growing Player in the Data Center Market
Hut 8 is a Bitcoin miner that is also making significant strides in the data center market. The company signed a 15-year, $7 billion deal with Anthropic, a leading AI lab, to supply 245 megawatts of data center capacity at its River Bend campus in Louisiana. As the article notes, "this deal highlights the growing value of watts for data centers, and why Hut 8 shares are so attractive." The stock currently has a market capitalization of $6.6 billion, which appears relatively inexpensive compared to the value of the Anthropic deal. Hut 8 has a long-term development pipeline of up to 8.6 gigawatts of data center capacity and a solid balance sheet, with 13,696 Bitcoins in reserve from its mining operations, which were worth about $1.6 billion.
Growth Prospects for AMD and Hut 8
Both AMD and Hut 8 have strong growth prospects, with AMD expecting 35% compound annual growth in revenue and adjusted earnings per share expected to exceed $20. As the article states, "the earnings estimate suggests that the stock, currently trading at just over $200 per share, is conservatively valued at approximately 11 times the long-term target." Hut 8’s revenue increased 91% year-over-year in the third quarter to $83 million, primarily driven by its Bitcoin mining operations. Analysts anticipate the company’s revenue will nearly double to $429 million this year, which is just a stepping stone to further growth in the coming years. As the article concludes, "the stock has more than doubled in value over the past year, with further gains expected for investors."
Conclusion
In conclusion, the growing demand for AI infrastructure is driving significant growth for companies like AMD and Hut 8. With strong growth trajectories and significant deals in place, these companies are well-positioned to reach new highs in 2026 and beyond. As the article notes, "the prospect of more deals further bolsters the stock’s value," and investors who buy shares today are looking at stellar return prospects. With the increasing need for compute power and the growing value of data center capacity, AMD and Hut 8 are two companies that are likely to continue to thrive in the coming years.
https://www.fool.com/investing/2026/01/15/2-artificial-intelligence-ai-stocks-poised-to-run/