| DAILY ISSUE Say Hello to the $400 Billion AI Bazooka Aimed at the Market VIEW IN BROWSER
The skeptics are out in force. They’ve got charts, historical parallels, and breathless warnings about bubbles, overvaluation, and “too much too soon.” They’ve got a laundry list of reasons why AI stocks can’t keep soaring. I’ve got one reason why they’re all wrong… It’s shockingly simple: Most money in the modern economy is going to AI. That reason behind this AI delegation is why AI stocks have been soaring, and it’s why they’ll keep soaring. And when you follow the money, the trail doesn’t just point to AI – it leads straight to the beating heart of the global economy itself. Big Tech Is the Global Economy Let’s stop pretending otherwise: Big Tech doesn’t just influence the global economic order — they are the global economic order. Nvidia (NVDA), Microsoft (MSFT), Apple (AAPL), Alphabet ( GOOGL), Amazon ( AMZN), Meta (META), Broadcom (AVGO), Taiwan Semiconductor (TSM) , Tesla (TSLA) — the valuations alone tell the story. They are all trillion-dollar companies. If Nvidia and Microsoft were countries, they would rank as the fifth and sixth largest economies in the world, bigger than India, the U.K., France, Italy, Brazil, Canada, Russia, and Mexico. Big Tech’s balance sheets make most nations look like they’re running lemonade stands. And these are the behemoths that are going all-in on AI spending. Not dabbling. Not cautiously allocating. They’re loading up a financial superweapon — what I call the AI Bazooka — and firing it almost exclusively at expanding AI infrastructure. | Recommended Link | | | | A brand new technology is lining up to be more disruptive than the internet or even today’s most advanced artificial intelligence. Those who prepare now could see massive stock gains. Those who don’t could find themselves on the wrong side of history. Click here for 3 steps to take today. |  | | The AI Capex Explosion The numbers are staggering. Let’s start with Meta. Once upon a time (as recently as 2022), Meta’s annual capital expenditures hovered around $20 billion. That’s a lot of servers and networking gear, but in Big Tech land, it was business as usual. Now? Over the next 12 months, Meta is expected to spend nearly $90 billion — more than 4x in just three years — with the bulk aimed straight at AI infrastructure. They are not alone. Before COVID, Microsoft was consistently spending less than $15 billion a year on capex. Over the next year, they’re also expected to cross the $90 billion mark — a 6x increase in six years. Alphabet? Annual capex was about $20 billion in 2021. This year: $95 billion. And the grand champion of AI spending — Amazon — is set to drop more than $120 billion over the next 12 months, up about 7.5x from 2019. Put it together, and the “Hyperscale 5” — the five largest U.S. hyperscale cloud operators who own the lion’s share of AI compute capacity — are expected to spend over $400 billion on capital expenditures in the next year alone. 
In late 2022, before ChatGPT exploded into the public consciousness, that collective number was under $150 billion. In less than three years, we’ve seen a 2.5x increase — and it’s still accelerating. Just look at that chart above. Like AI stock prices, it’s going vertical. What Makes This Different From Any Other Spending Cycle Tech spending cycles are nothing new. But this is different in three important ways: - The Scale – These companies aren’t just big. They are the largest profit-generating entities in human history. Their capex increases aren’t measured in percentages. They’re measured in entire GDPs of small countries.
- The Focus – This isn’t a scattershot approach across dozens of unrelated R&D priorities. Nearly every incremental dollar is going into AI infrastructure — datacenters, chips, networking, power, cooling. One sector, full blast.
- The Flywheel – AI infrastructure doesn’t just sit there. It enables better AI models, which drive more products, which generate more revenue, which funds more infrastructure. This is compounding growth in action.
That’s why I call it the AI Bazooka. It’s the concentrated firepower of the world’s richest corporations, aimed squarely at one target: AI dominance. Where the AI Bazooka Money Lands All that money has to find a home, and Wall Street has been more than happy to receive it. The beneficiaries are spread across the entire AI supply chain. Raw Materials - MP Materials (MP) – Rare earths supplier up nearly 600% in the past year.
- Commodity producers feeding chip and component manufacturers are seeing their order books fill years in advance.
Chip Foundries & Compute Engines - Taiwan Semiconductor (TSM) – Up 250% since ChatGPT’s launch.
- Nvidia (NVDA) – The poster child of the AI boom, up over 1,500% in five years.
Memory & Storage - Micron (MU), Western Digital (WDC), Seagate (STX) – All screaming to 52-week highs.
Semiconductor Equipment - ASML (ASML), Lam Research (LRCX), Applied Materials (AMAT) – Selling the pickaxes in this gold rush.
Interconnect & Networking - Astera Labs (ALAB) – Up nearly 4x since April.
- Marvell (MRVL), Rambus (RMBS) – Essential for the high-speed data movement AI demands.
Datacenter Networking & Optics - Arista Networks (ANET) – Red-hot networking leader.
- Lumentum (LITE), Coherent (COHR) – Optics stocks hitting all-time highs.
Power Generation & Energy Grid - Constellation (CEG) – Up 50% this year.
- Vistra (VST) – Up 170% in the past year.
- Quanta Services (PWR), Eaton (ETN) – Building the AI-powered grid.
Cooling & Infrastructure - Vertiv (VRT) – Cooling solutions darling.
- Dell (DELL) – Server rack integrator on a tear.
- Digital Realty (DLR), Equinix (EQX) – Datacenter developers cashing in.
This is the blast radius of the AI Bazooka. These stocks have been winning, and so long as the bazooka keeps firing, they’ll keep winning. Why This AI Spending Boom Won’t Stop The big question: Is this just a temporary surge, or a sustained trend? Our view: It’s only just getting started. Over $400 billion is expected to pour into AI infrastructure in the next 12 months. By 2030, we expect annual AI capital expenditures to approach $1 trillion. Big Tech’s appetite is insatiable, as every new AI model demands more compute, more storage, more bandwidth, more power. The more they spend, the more AI integrates into daily life, which then drives even more spending. It’s a self-fueling industrial build-out on a scale the world hasn’t seen since the post-WWII economic boom. So when pundits say AI stocks can’t keep going up, they’re ignoring the single biggest capital allocation trend in the world. It’s not just that Big Tech wants to dominate AI. They must. The competitive stakes are existential. The company with the most compute wins the AI race. That’s why they’re emptying their vaults into chips, datacenters, and power grids. Wall Street isn’t dumb. It follows the money. And right now, the money — all the money — is headed into AI. The Bottom Line on AI Stocks The AI Bazooka is locked, loaded, and firing hundreds of billions of dollars into one of the most powerful technological buildouts in history. The winners are clear: AI infrastructure stocks, from chipmakers to cooling providers, are riding the blast wave. As long as Big Tech keeps spending (and they will), these stocks will keep ripping higher. The skeptics can cling to their valuation charts and bubble metaphors. The rest of us will follow the money. Because in this market, the AI Bazooka always finds its target. Click here to learn what AI stocks I recommend. Regards, | 
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