AI Infrastructure Spending Surges as Chip Sales Take Backseat

The shift in focus from AI chip sales to infrastructure spending is gaining momentum. Analysts now estimate that only about 25% of total AI infrastructure spending goes toward chips, while the remaining 75% covers power management, cooling systems, and data center buildouts.

Two companies, Vertiv Holdings and Bloom Energy, are leading this trend after posting impressive quarterly results. Vertiv's revenue jumped 30% year-over-year to $2.65 billion in Q1 2026, with organic growth at 23%. Adjusted earnings per share surged 83%, while the company's backlog exceeded $15 billion.

Bloom Energy had an even more dramatic quarter, with revenue soaring 130% year-over-year to $751 million and net income reaching around $71 million. The company also expanded its partnership with Oracle to include up to 2.8 GW of capacity and secured a financing arrangement with Brookfield for up to $25 billion.

Former Bitcoin mining operations are now pivoting into AI data center hosting, taking advantage of their existing high-power facilities and relationships with energy providers. IREN, a company with roots in crypto mining, has secured a deal with Nvidia for GPU cloud computing and announced a 5 GW infrastructure partnership.