BlackRock Sees AI Capex Boom Far From Peaking, Hardware And Energy Firms In Spotlight: 'The Money Is Very, Very Clear' - BlackRock (NYSE:BLK), NVIDIA (NASDAQ:NVDA)

Ben Powell, the chief investment strategist for the Asia-Pacific region at BlackRock Inc., predicts that the current wave of capital investment in artificial intelligence (AI) infrastructure is far from its peak.

AI Capex Boom Favors Chipmakers, Suppliers

Powell, on the sidelines of the Abu Dhabi Finance Week, highlighted that the suppliers of AI “picks and shovels” such as chipmakers, energy producers, and copper-wire manufacturers are the primary beneficiaries of the ongoing capital influx, reported CNBC.

Powell said the hyperscalers are acting as though anything short of first place would push them out of the market, prompting an aggressive ramp-up in spending, even if it risks overshooting.

Powell said much of this capital will likely move toward the companies enabling the AI build-out rather than the model makers themselves, echoing a rising belief among global investors that the most durable gains from the AI boom may come from the hardware, energy, and infrastructure supporting it.

AI Growth Shifts From Spending To Execution

However, concerns about a potential AI bubble have long centered on whether demand would justify the sector’s explosive valuations.

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AI Capex Boom Favors Chipmakers, Suppliers

He noted that AI-driven capital spending is accelerating with no signs of easing, as major tech firms race fiercely for dominance in what they view as a winner-takes-all battle.

Powell added that major tech companies are only beginning to tap credit markets to finance the next wave of AI growth, signaling that even more capital is on the horizon.

He said "the money is very, very clear," adding that BlackRock expects the broader capex boom to continue.

Powell said the hyperscalers are acting as though anything short of first place would push them out of the market, prompting an aggressive ramp-up in spending, even if it risks overshooting.

AI Growth Shifts From Spending To Execution

In its new global outlook, earlier this month, BlackRock argued that the U.S. economy is entering a capital-intensive regime driven by massive AI investment, one that keeps growth resilient even as traditional business-cycle signals cool. The firm estimates that global AI capex could reach $5 trillion to $8 trillion by 2030, with the U.S. leading the buildout.

However, concerns about a potential AI bubble have long centered on whether demand would justify the sector’s explosive valuations.

Jordi Visser of 22V Research says the next phase of AI investing won't hinge on who spends the most, but on who can execute under constraints. As the industry shifts from capital limits to delivery limits, he argues that success will depend on execution, infrastructure readiness, and project management. By 2026, the winners will be the companies that can turn contracts into real capacity while protecting margins despite rising costs and tighter deadlines.

Amid this optimism, I/O Fund's CEO Beth Kindig predicts Nvidia Corp (NASDAQ:NVDA) valuation to reach $20 trillion by 2030. Wall Street keeps revising AI infrastructure spending higher: from an initial $280 Billion peak to McKinsey estimating $5.2 trillion for AI data centers. If Nvidia holds or grows its ~50% market share, the potential $20 trillion could be a reality.

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