Got $1,000? 2 Growth Stocks Building the Data Centers of the AI Infrastructure Supercycle.

Axe Cap view

AI Infrastructure: Why AMD and Broadcom Matter for SA Investors

AMD and Broadcom are key players in AI-driven data center growth, with potential impact on USD/ZAR and tech exposure for JSE investors.

The push into AI infrastructure is no longer a future theme—it's happening now, led by companies like AMD and Broadcom. AMD's strategy combines broad partnerships with tech giants and targeted acquisitions to capture growth in inference and agentic AI markets. Broadcom, meanwhile, dominates custom ASIC chips and data center networking, expecting its custom chip revenue to quadruple in just two years—an extraordinary forecast at a valuation under 12 times estimated 2028 earnings. For South African investors, this matters because these moves can influence USD/ZAR dynamics through tech sector flows and sentiment, especially given our market’s sensitivity to global tech trends via Prosus and Naspers. But the local connection isn’t direct—none of these giants are JSE-listed, and the rand’s reaction depends on broader risk appetite and dollar strength. Still, given the potential scale of AI infrastructure investments, watching USD/ZAR alongside select tech counters makes sense. This view could be wrong if AI infrastructure growth slows or if the dollar strengthens substantially, squeezing rand assets. this is just our opinion and not financial advice