2026 Is Going to Be (Another) Massive Year for AI Chips

Some on Wall Street think AI is slowing down ...

Have you been told something like:

"Wall Street is always looking 6 months ahead."

Wall Street makes this crap up to make you feel stupid.

Don't buy into it.

April was a great example.

When the market was taking a crap …

What were big money managers doing?

Selling.

If these Wall Street suits were so smart they would have been buying the dip.

Instead they sold at the lows.

Wall Street analysts live quarter to quarter.

They model earnings estimates and worry about the short term.

None of them look 6 months out because they don’t need to.

But infrastructure cycles work differently.

They're measured in years, not quarters.

The semiconductor companies powering AI aren't just having a good year.

They're entering a multi-year supercycle with visibility through 2026.

Wall Street will figure this out eventually.

Probably around the time Amazon, Google and Microsoft confirm it on a conference call later this year.

So while they're busy selling the dips and managing risk …

Let’s stay one step ahead of what's actually happening.

The Order Books Are Already Full

Semiconductor CEOs are literally reading from their 2026 order books.

Micron's MU 0.00%↑ CEO said last week HBM demand will "significantly exceed" normal memory growth in 2026.

Their new HBM4 chips start volume production next year.

Broadcom's AVGO 0.00%↑ CEO expects their "60% AI growth rate to sustain into fiscal 2026."

That's $5.1 billion quarterly growing at 60%.

Nvidia's NVDA 0.00%↑ Jensen Huang said they'll "keep our supply chain quite busy for several many more years."

These aren't projections.

These are purchase orders already signed.

Wall Street analysts are still modeling "what if" scenarios while the AI race is speeding forward.

Big Tech Went All In

I realize why people are skeptical the spending on AI can continue.

The numbers are insane.

• Microsoft: $80 billion in 2025

• Amazon: $100 billion AI commitment

• Meta: $64-72 billion for AI infrastructure (and rising)

• Google: $75 billion.

That’s $320 billion in 2025 alone.

Here's what Wall Street doesn't understand:

These aren't budgets you can turn on and off.

These are multi-year construction projects.

When Microsoft MSFT 0.00%↑ builds a datacenter, they're placing chip orders 18 months in advance.

Mark Zuckerberg said it perfectly:

"I'd rather risk building capacity before it is needed, rather than too late, given the long lead times."

They're not building for 2025.

They're building for 2026 and beyond.

Every datacenter needs thousands of AI chips.

The math is simple.

Why This Matters Now

Here's what really seals the deal.

Not everyone understands AI because it’s not designed for the consumer.

We logged onto AOL chatrooms.

We held the iPhone in our hands.

Past tech was consumer driven.

But AI is a business productivity tool … and it’s working.

AI is already doing 30%-50% of the work at Salesforce CRM 0.00%↑ CEO Marc Benioff says.

He calls it a "digital labor revolution"

All with 93% accuracy.

This isn't future tech.

It's happening right now at one of the world's largest software companies.

When enterprise software leaders are replacing half their workforce with AI, you know the infrastructure demand is not only real …

But it’s going to last.

The Bottom Line

Wall Street just doesn't get it.

While they debate quarterly earnings and worry about "overvaluation," the AI infrastructure revolution is steamrolling ahead without them.

$320 billion committed. Supply chains maxed out. CEOs already reading from 2026 contracts.

This isn't speculation.

This isn't hype.

This is the largest technology build-out in human history happening in real time.

Nvidia, Broadcom, Taiwan Semiconductor aren't just semiconductor stocks anymore.

They're infrastructure monopolies in the most important technological shift since the internet.

And here's the beautiful part:

Wall Street will eventually figure this out.

Probably around Q3 2025 when the large companies tell them they are going to spend more.

By then, these stocks will have already repriced 50-100% higher.

You have the advantage right now.

You can see what's coming while they're still modeling "what if" scenarios.

The semiconductor supercycle of 2026 isn't a trade.

It's a multi-year wealth creation opportunity disguised as tech stocks.

Position accordingly.

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No call to action. Not selling you anything. Just understand what’s happening right now is a rare event. ANY weakness caused by Trump, tariffs, conflict, etc is a chance to buy more.

See you next time

Colin