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

Hyperscalers Are the Backbone of AI. Here's Why I Own Amazon, Alphabet, and Meta Platforms. Geoffrey Seiler, The Motley Fool Thu, September 3, 2026 at 3:42 PM GMT+2 5 min read NVDA AMZN GOOG META Hyperscalers are companies that own massive data centers.

While they are often associated with cloud computing providers, that isn't always the case, as some megacap tech companies still prefer to build out their own infrastructure to save costs. Ultimately, these are the companies that are driving the AI infrastructure boom. They are spending massive amounts on capital expenditures (capex), and while pick-and-shovel plays like semiconductor companies are reaping the rewards, it is the deep-pocketed hyperscalers that are in control.

After all, if they don't see strong returns on their AI infrastructure investments, they can cut off the spending spigot. Missed Nvidia in 2009? This Rare Signal Is Flashing Again.

 In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.  For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia.   Continue » I currently own shares in three top hyperscalers -- Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), and Meta Platforms (NASDAQ: META) -- and think they are three of the best growth stocks to own over the long haul.

All three have great core businesses with wide moats that generate massive operating cash flow that can help pay for their AI infrastructure spending, on which they are getting great returns. Here's why I own these three stocks. Amazon If you're like me, you're likely a frequent customer of Amazon.

The company has built the nation's dominant e-commerce platform, and its warehouse and logistics network creates a wide moat that is unlikely to be challenged in the U. S. Meanwhile, its internal investments in robots and AI have created enormous operating leverage in the business.

What people may not realize, though, is that the business that contributes the most to Amazon's bottom line is actually its cloud computing unit, Amazon Web Services. The company created the entire infrastructure-as-a-service concept, and it remains the world's largest cloud provider today. The company also has some strong built-in advantages due to its custom chips, which help reduce inference costs, and its partnerships with leading frontier labs Anthropic and OpenAI.

Amazon is starting to fire on all cylinders again and has a big opportunity in front of it with a goal to eventually reach $1 trillion in cloud revenue. Alphabet Alphabet is best known for its Google search business, which continues to be a money-making machine. Meanwhile, the incorporation of its Gemini large language model into its platform and AI tools such as AI Overviews, AI Mode, Circle to Search, and Lens have been helping drive query and revenue growth.

The company has one of the largest digital ad platforms on the planet, which is helping it drive consumer AI revenue better than other frontier labs such as OpenAI. Story Continues At the same time, its Google Cloud business has been growing at a rapid pace, with segment revenue surging 82% last quarter to $24. 8 billion and operating income more than tripling to $8.

8 billion. The company's Tensor Processing Units (TPUs), which are widely considered to be the best custom AI accelerators in the market today, give it a big cost advantage in training its own models, running inference, and offering a cheaper alternative to its cloud computing customers. It has even begun selling some TPUs directly to customers for deployments outside of Google Cloud.

Alphabet is the most complete AI company, and that positions it to be a long-term winner in the space. Image source: Getty Images. Meta Platforms Meta Platforms is an unusual hyperscaler in that it currently does not operate a cloud computing business -- it built out its massive data center infrastructure solely to support its own compute needs.

However, with demand for compute power so high, it is considering getting into the cloud business. Few companies have been as good at using AI to drive growth in their core businesses as Meta, but it has a flywheel business built for AI. The company uses AI to improve its content recommendation engine to keep users on its platforms longer.

This allows it to serve people more ads. At the same time, it is also giving advertisers better tools to connect with and convert users, which is helping it increase the prices it charges for ads. The better its models become, the more revenue it generates.

In fact, it is believed that Meta could surpass Google this year to become the largest digital advertising platform in the world. The stock has fallen to cheap levels over the past year or so due to market worries about the company's high AI infrastructure spending, and I think now is a great time to scoop it up. In fact, while I like all three of these stocks, Meta Platforms may have the most medium-term upside.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. If you'd invested $5,000 then,  you'd be sitting on $2,913,839  today.

* Now, for the first time in years, that same  "Total Conviction" signal  is flashing for a company 1/100th the size of Nvidia. It's a key player in the $1. 8 trillion space race, and with the stock recently sitting 20% off its highs, the window to get in early is closing fast.

Continue » *Stock Advisor returns as of August 3, 2026 Geoffrey Seiler has positions in Alphabet, Amazon, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, and Meta Platforms. The Motley Fool has a disclosure policy .

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