{
  "id": 17371966,
  "title": "Data Center Spending Will Surge to $1.4 Trillion in 2027. Here’s 1 Stock to Buy With $500 to Capitalize on This Massive Opportunity",
  "url": "https://urgent.news/2026/10/31/data-center-spending-will-surge-to-1-4-trillion-in-2027-heres-1-stock",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-31T08:42:01.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/10/31/data-center-spending-will-surge-to-usd1-4-trillion-in-2027-here-s-1-stock-to-buy-with-usd500-to-capitalize-on-this-massive-opportunity/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "By 2027, spending on data center systems is projected to surge by 55%, reaching nearly $1.4 trillion. This growth is fueled by hyperscalers and AI companies expanding their data center infrastructure to accommodate artificial intelligence workloads. As a result, the semiconductor industry is expected to experience significant growth, as chips make up 95% of an AI data center server rack's value. Applied Materials (AMAT), a leading manufacturer and seller of semiconductor manufacturing equipment, has capitalized on the healthy demand for chips this year. The company reported a 25% year-over-year revenue increase to $9.12 billion in its fiscal 2026 third-quarter results, with non-GAAP earnings per share jumping 41% to a record $3.50. Looking ahead, Applied Materials anticipates its semiconductor revenue could grow from $1 trillion in 2025 to a range of $1.7 trillion to $3.2 trillion by 2030, driving demand for wafer and fabrication equipment (WFE) sales. The company's services segment is expected to generate over $12 billion in revenue by 2030, up from $6.4 billion in fiscal 2025. With an attractive valuation at around $400 per share, trading at just 23 times forward earnings, and analysts projecting a nearly doubled EPS within two years, Applied Materials could potentially reach a premium valuation of $710 per share within two years.",
  "summary": "Applied Materials is a key cog in the AI data center ecosystem, and its shares can surge impressively as the semiconductor equipment market grows.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Nasdaq Markets",
        "title": "Data Center Spending Will Surge to $1.4 Trillion in 2027. Here’s 1 Stock to Buy With $500 to Capitalize on This Massive Opportunity",
        "url": "https://urgent.news/2026/10/31/data-center-spending-will-surge-to-1-4-trillion-in-2027-heres-1-stock-17379890",
        "published": "2026-10-31T09:02:01.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}