Artificial intelligence spending credit positive for US tech firms: Fitch

​​​​​​​By Ovunc Kutlu

ISTANBUL (AA) - Robust artificial intelligence (AI) infrastructure spending is positive for information technology hardware and semiconductor manufacturers’ credit profiles in the US, according to Fitch Ratings.

Demand for AI is supporting semiconductor revenue growth, the rating agency said Monday.

"AI spending is mainly beneficial for the credit profiles of processors, networking gear and storage suppliers to hyperscalers, large technology companies that have the financial flexibility and capabilities to invest in requisite AI technologies," it added.

Fitch noted that hyperscalers are spending more than $50 billion per quarter on digital infrastructure, including graphics processing units for AI, which is not expected to moderate in the near term.

"AI services adoption will be robust in the longer term, but it will remain nascent in the next few years given significant data standardisation required at the enterprise level," according to the statement.