TJ Thorne
Showing 1–2 of 2 transcripts.
- Bank of America24 min
Chip stocks retreat but AI spend advances; upcycle has room to run
Analysts project that hyperscalers and neoclouds will spend approximately $1 trillion in 2026 and $1.4 trillion in 2027, driven by tangible AI returns that have revised forecasts upward by 20%. While semiconductor markets face near-term volatility and supply constraints for High Bandwidth Memory, the sector anticipates sustained growth through 2028 supported by a hybrid infrastructure model and geopolitical imperatives to maintain U.S. leadership. This capital-intensive expansion is expected to contribute roughly 70 basis points to U.S. GDP growth in 2026, despite rising borrowing costs and competitive pressures from accelerating Chinese investment.
- Bank of America24 min
Chip stocks retreat but AI spend advances; upcycle has room to run
U.S. hyperscalers and emerging neoclouds are accelerating capital expenditures to nearly $1 trillion in 2026, driven by tangible AI gains and a projected 40% growth rate through 2027. This surge occurs amidst a semiconductor market correction and tightened funding conditions for smaller players, yet structural demand for High-Bandwidth Memory and robust enterprise model pricing sustain infrastructure economics. Analysts position this activity as the third year of a potential decade-long cycle, with geopolitical competition and regulatory shifts shaping the sector's trajectory toward 2028.