Where to invest $10,000: three stocks that could benefit from $1 trillion in AI spending

In the two months since the war in the Middle East began, the value of the world's largest companies has grown by more than $5.4 trillion. Most of the growth is due not to oil companies, but to the AI boom, the Financial Times has calculated. Total capital spending on AI could exceed $1 trillion in 2027 and reach $800-900 billion this year, analysts at Evercore and Bank of America predict.

George Timoshin, associate strategist at Freedom Finance Global, suggests May allocate $10,000 into three stocks that he believes could be among the main beneficiaries of this investment wave.

Power Solutions International is a company that makes engines and power systems for trucks, industrial equipment and military vehicles.

In March 2026, PSI took over the manufacturer of welding equipment and steel components MTL Manufacturing & Equipment. By taking over the production of equipment that previously had to be purchased, PSI has simplified control of the supply chain and expects to fulfill new orders more quickly. Of course, this is the focus on data centers: CEO Dino Xikis sees vertical integration and production capacity as key factors for success in this market. Timoshin calls the development of the service business an additional support for PSI's growth. In 2025, service costs for end users have fallen by around 15% due to remote monitoring and predictive maintenance (without waiting for major breakdowns). And rapid scaling is not a hindrance.

Several institutional investors have increased their stakes in PSI, according to the company in its most recent filing with the SEC. For instance, Navellier & Associates increased its stake in the company by 58.6% during the fourth quarter of 2025. Allspring Global Investments Holdings LLC also increased its stake by 59.5% during the fourth quarter. Ruffer LLP opened a new position in the fourth quarter worth approximately $2.18 million. In total, institutional investors now own 22.28% of the company's stock.

But not all investors are positive. On March 20, a class action lawsuit was filed in the U.S. District Court of Northern Illinois. It alleges that PSI misled investors by overstating its ability to meet demand for data center power systems and underestimating the costs, operational complexities and inefficiencies associated with rapid capacity expansion. According to the plaintiffs, this caused the company's positive statements about its business prospects and profitability to be insufficiently substantiated and misleading to the market.

Georgiy Timoshin attributes the main risks to tariff pressure, concentration of revenues and supplies on a limited number of clients and counterparties, as well as possible technological substitution by battery energy storage systems. The fair price of the shares on a 12-month horizon, according to Freedom Broker analysts, is $107.

Power Solutions International shares fell 17.7% at the market close on Ma. 11, and another 35.7% at the post-market close. Investors were disappointed by the company's first-quarter earnings report - sales declined and profits fell 62%. At the close of trading on Ma. 11, one share was worth $62.45.

Broadcom is Ma's second bidder. The company supplies technology infrastructure inside data centers - chips, networking solutions and software. Alphabet, Microsoft, Amazon and Meta are expected to spend at least $725 billion on AI infrastructure this year, increasing demand for chips, servers, storage and networking equipment from companies like Broadcom. "An infrastructure technology leader with unrivaled scale and competencies," is how Timoshin characterizes Broadcom. The company operates on a fabless model: it designs chips, develops the architecture, sells solutions, and outsources manufacturing.

"High profitability under this model allows for efficient conversion of revenue growth into free cash flow," notes the Freedom Finance Global strategist. This thesis is supported by the words of Broadcom CEO Hock Tan:

Unlike Nvidia, which mostly builds general-purpose GPUs, Broadcom helps customers develop application-specific integrated circuits (ASICs) - these custom chips are designed to perform the one type of task that that company needs. It's cheaper. In April and May 2026, Broadcom signed several major agreements with leading AI players Meta, Alphabet, Anthropic and OpenAI.

Broadcom retains a diversified portfolio of non-AI solutions, including chips for smartphones, storage, and home and corporate Internet infrastructure. After a period of weak demand, these areas are gradually transitioning to recovery, notes Timoshin.

The stock has a fair price target of $500 over a 12-month horizon, according to analysts at Freedom Broker.

At the market close on Ma. 11, Broadcom's stock was worth $428.43.

Ma's third stock is Ma, which owns Facebook, Instagram, WhatsApp and Threads and invests in artificial intelligence.

According to Timoshin, the company continues to improve monetization through the use of AI in recommendation algorithms and ad targeting, increasing user engagement and the effectiveness of advertising for businesses. One of the key drivers of growth remains the development of its own AI infrastructure and large Llama language models, which Meta integrates into its services and AI assistants.

In 2026, the company continued to increase investments in AI. In April, Meta significantly raised its capital expenditure forecast for 2026 to $125-145 billion, a significant part of which will be spent on the development of data centers and AI infrastructure. But Timoshin believes that this does not carry significant risks for the company:

At the same time, Meta is expanding the commercial use of WhatsApp and testing new generative AI tools for advertisers and users. Here the assessments of the major investment banks diverge: UBS sees the second quarter in a positive light, while JPMorgan demands more clarity on the payback period for AI investments outside the core advertising business.

Timoshin considers the scale of the company's audience to be an additional growth factor: more than 3.5 billion people use Meta's services every day, which also provides a huge amount of data for training AI models and further improving advertising algorithms.

Timoshin attributes the main risks to increased competition in AI, growing regulatory pressure in the US and Europe, and uncertainty around the payback of multi-billion dollar investments in data centers and AI models. Freedom Broker analysts estimate a fair price target of $825 for the stock over a 12-month horizon.

At the market close on May 11, Ma's stock was worth $598.86.

This article was AI-translated and verified by a human editor