AI Agents and Lower Costs Are Fueling a Computing Boom

Published July 10, 2025 –  By Angelo Zino, Senior Vice President, Technology Equity Analyst

Data center spending is on track to surpass $1 trillion by 2028. Are you positioned for the AI infrastructure surge? 

With the rise of advanced reasoning models and AI agents, the computing economy is entering a phase of exponential growth. What was once driven by a handful of hyperscalers is now expanding to include a broader mix of enterprise, sovereign, and emerging infrastructure builders. This thematic shift has significant implications for investors, cloud providers, and semiconductor leaders alike. 

The Compute Revolution Is Just Beginning 

1. AI Agents Are Driving Demand into Overdrive: Agentic AI models, designed for reasoning, decision-making, and autonomy, require far more computing power than traditional GenAI. Some models now need 100x to 1,000x for the processing power of legacy workloads.
2. Total Cost of Ownership Is Falling Fast: NVIDIA’s architectural leap from Hopper to Blackwell is driving 85%+ efficiency gains. With Rubin and Rubin Ultra on the horizon, computing infrastructure costs are dropping sharply while opening the floodgates for expanded AI adoption.
3. From Big Four to Many: While Amazon, Microsoft, Alphabet, and Meta will remain central, new players like Tesla, Apple, CoreWeave, and sovereign governments are building their own AI infrastructure, unlocking the next wave of capex acceleration.
4. Compute Demand = Digital Oil: As costs drop and use cases explode, computing becomes the next indispensable resource. Like mobile data in the smartphone era, AI demand is poised to soar—even as costs decline. 

Get the Full Picture – Download CFRA’s Full Thematic