The AI value chain · chip to software
Where every AI dollar flows
Eleven layers sit between a hyperscaler's capex budget and the software that earns the money back. Scroll through each one to see what it does and who's biggest in it.
91 companies · market caps at the Aug 7, 2026 close
The whole machine at a glance
Capex flows down from five companies, through the build, to the operators and the software. Then it comes back as revenue. Click any box to jump to its layer.Capex flows down from five companies, through the build, then comes back as revenue.
Layer 01 · CAPITAL
Hyperscalers
The tech giants writing the checks. Their capital budgets fund most of the buildout below.
The same five reappear at layer 11: they fund the machine, then sell its output.
$12.93Tcombined market cap · 5 companies
▲ +37%projected growth, 2027 vs 2026 · hyperscaler capex
Morgan Stanley, May 2026 ($805B → ~$1.1T)
Layer 02 · THE SHELL
Data centers & digital infrastructure
The buildings, land and campuses that everything above physically lives in.
EME shared with Cooling.
$229Bcombined market cap · 4 companies
▲ +14%projected growth, 2027 · global data-center capex
Dell'Oro · JLL, 2026 ('26-'30 CAGR)
Layer 03 · INSIDE THE RACK
Compute, silicon & foundry
Designs and builds the GPUs, CPUs and custom silicon that actually run AI models.
AMAT · LRCX · KLAC · MRVL also appear in Memory, since the same toolmakers serve both layers.
$13.24Tcombined market cap · 14 companies
▲ +32%projected growth, 2027 vs 2026 · AI infrastructure spend
Gartner, May 2026 ($1.43T → $1.89T)
Layer 04 · INSIDE THE RACK
Memory, HBM & storage
Keeps those chips fed with data: HBM stacked beside the GPU, DRAM and flash behind it.
Shared listings: AMAT, LRCX, KLAC and MRVL with Compute; ALAB with Networking; AEHR with Photonics.
$4.92Tcombined market cap · 19 companies
▲ +55%projected growth, 2027 vs 2026 · HBM bit shipments
TrendForce, Jun 2026 (50-60%; prices rising too)
Layer 05 · INSIDE THE RACK
Networking & interconnect
Wires tens of thousands of GPUs into one machine so they can train a single model.
ALAB also sits in Memory; its connectivity silicon straddles both layers.
$932Bcombined market cap · 6 companies
▲ +25%projected growth, 2027 · data-center switch revenue
650 Group · Dell'Oro, 2026
Layer 06 · INSIDE THE RACK
Photonics & optical
The lasers, fiber and transceivers that carry all that traffic between racks as light.
AEHR also sits in Memory test equipment.
$363Bcombined market cap · 12 companies
▲ +17.5%projected growth, 2027 · optical transceiver revenue
LightCounting, 2026 (15-20% band)
Layer 07 · THE FACILITY
Power generation & energy
Builds the new gigawatts of nuclear, gas and renewable power that AI demand is forcing onto the grid.
$720Bcombined market cap · 9 companies
▲ +20%projected growth, 2027 vs 2026 · US data-center electricity demand
IEA Electricity 2026
Layer 08 · THE FACILITY
Power delivery & electrical
Steps grid power down and routes it safely to every rack on the floor.
$573Bcombined market cap · 5 companies
▲ +22%projected growth, into 2027 · DC power infrastructure revenue
Dell'Oro, Jul 2026 (low-20s%)
Layer 09 · THE FACILITY
Cooling & thermal
Pulls the heat back out so the silicon can run flat-out without throttling.
EME also builds the data-center shell (layer 2); the same contractors do both.
$409Bcombined market cap · 6 companies
▲ +24%projected growth, 2027 · DC liquid-cooling revenue
Dell'Oro, Jan 2026 ('25-'29 CAGR)
Layer 10 · OPERATORS
Neoclouds & GPU operators
Independent operators that buy GPUs by the thousand and rent them out by the hour.
The hyperscalers operate most capacity themselves. This is the challenger fleet, a rounding error next to their $12.9T.
$144Bcombined market cap · 12 companies
▲ +58%projected growth, 2027 · GPU-cloud provider revenue
Synergy Research, Apr 2026 (CAGR; near-term higher)
Layer 11 · THE PAYOFF
AI software & tools
The platforms and apps that turn rented compute into products customers pay for.
MSFT · AMZN · GOOGL · ORCL are the layer-1 hyperscalers wearing their software hat.
$12.41Tcombined market cap · 10 companies
▲ +41%projected growth, 2027 vs 2026 · AI software spend
Gartner, May 2026 ($453B → $638B)
The loop closes: AI revenue
Software revenue lands back at the same companies that wrote the first check. Microsoft, Amazon, Google and Oracle sit at both ends of the chain, so what customers pay them this year helps fund next year's buildout.