The long-term impact of AI remains to be seen, but the technology's effect on the market has already been significant, thanks in large part to the extraordinary capital expenditure put toward infrastructure. Semiconductor stocks, data center networking companies, energy suppliers, and even some construction companies have experienced prolonged rallies, driven by the massive momentum behind the nationwide infrastructure buildout.
Goldman Sachs has predicted a 61% year-over-year (YOY) increase in domestic data center power demand for 2027, on top of the hundreds of billions of dollars hyperscalers have already spent this year. There are indications that, for some companies, we have not yet reached peak spending, but rather that this may be in the early stages of a multi-year cycle.
