Investment chief names four stocks for AI spending concerns

An investment chief screened non-semiconductor stocks that could maintain AI exposure even if hyperscalers reduce capital spending. Ben McMillan, IDX Advisor's chief investment officer, said clients asked for companies that benefit from the AI trade without depending primarily on data-center construction budgets.

Amazon Amazon appears on the list even though it is itself a hyperscaler.

AWS accounts for 18 percent of total revenue while the remaining 82 percent comes from retail, third-party seller services, advertising, and Prime subscriptions. McMillan said those segments tie revenue to consumer spending rather than enterprise capital-expenditure cycles.

Equinix Equinix operates as a data-center REIT with more than 10,000 clients across multiple industries. McMillan noted that a hyperscaler pause would slow new-build bookings but would not eliminate existing revenue streams.

Eaton Eaton supplies electrical-grid components.

McMillan said data-center orders in its Electrical Americas segment rose about 240 percent year over year, yet utility-grid modernization, aerospace, and reshoring spending together support more than 70 percent of the business.

Realty reports 93.6 percent occupancy in its Americas data centers. McMillan said long-dated leases protect near-term cash flows even if new hyperscaler orders slow. The four stocks emerged from a screen of S&P 1500 companies that offer AI-related revenue while maintaining revenue sources outside hyperscaler capital spending.