Hyperscalers Are the Backbone of AI. Here's Why I Own Amazon, Alphabet, and Meta Platforms.

Hyperscalers, companies that own large data centers, are driving the AI infrastructure boom. Amazon (AMZN), Alphabet (GOOGL) and Meta Platforms (META) are three top hyperscalers I own as long-term growth stocks. All three have strong core businesses, wide moats, and generate significant operating cash flow to fund their AI infrastructure investments, which they are seeing good returns on.

Amazon's cloud computing unit, Amazon Web Services (AWS), is its largest business and provides advantages through custom chips and partnerships with leading AI labs. Alphabet, known for Google search, has a large digital ad platform and strong AI tools driving query and revenue growth. Its Google Cloud business is also growing rapidly.

Meta Platforms, which does not operate a cloud business, uses AI to improve its core platforms and ad services, potentially becoming the largest digital advertising company. Its recent stock price decline presents a buying opportunity.