The "picks and shovels" approach to AI investing
Rather than betting on which AI company will win, the picks-and-shovels approach focuses on the businesses supplying the infrastructure behind the boom—from chips and data centres to power, memory and cooling.
ET&A Research · 24 July 2026
When people think about investing in artificial intelligence, they often focus on the most visible companies: the chatbot platforms, the AI software providers, or the businesses trying to use AI to disrupt existing industries. However, there is another way to think about AI investing. Rather than trying to pick the winning AI application, investors can look at the companies providing the infrastructure that makes AI possible. This is known as the “picks and shovels” approach.
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