Where is the AI Supercycle heading?
The cloud giants just set their capital expenditure plans for 2026: $725 billion.
That's nearly double compared to last year.
Microsoft, Google, Amazon, Meta, each exceeding $100 billion.
This isn't just hype; it's real cash being thrown around.
But the question is, where should the money flow?
Most folks are still eyeing the first phase targets, while the smart money has already shifted to phase three.
Phase One: Chips (2023-2025)
The groundwork for foundational infrastructure has been laid.
NVDA surged 39%, and INTC's Q1 earnings pushed the Philadelphia Semiconductor Index above 10,000 points.
Chips remain central, but the low-entry window has closed.
Entering now doesn’t mean you can’t profit, but the risk-reward ratio isn’t as favorable as in the past two years.
Core targets: NVDA, AMD, AVGO, INTC, MU, GLW
Tracks: Semiconductors, Storage, Optical Communication
Phase Two: Power and Supporting Infrastructure (2025-2027)
This is the phase most people are just starting to grasp.
VST, after its acquisition, has become the largest private power producer in the U.S., and GEV has more than doubled in a year.
MOD is providing cooling solutions for Nvidia, and GLW has jumped 74% year-to-date, with optical fiber demand exploding.
The SMR small nuclear reactor is a dark horse, with OKLO, BWXT, and NNE positioning themselves to supply power directly to data centers.
There’s still room in the sector, but the obvious targets have already completed their major upswings.
Core targets: VST, GEV, CEG, ANET, MOD, OKLO, BWXT, NNE
Tracks: Power, Grid, Cooling, Networking Equipment, Nuclear/SMR
Phase Three: Robotics, Aerospace, Defense (2026-2028)
AI is stepping out of the data center and into the physical world.
Most people will miss out on this phase.
Tesla is retrofitting its Fremont factory to produce humanoid robots Optimus, planning a capital expenditure of $25 billion, aiming for mass production in the second half of 2026.
Rocket Lab reported record revenue of $602 million, with unfulfilled orders at $1.85 billion.
KTOS’s Valkyrie drone made the U.S. Marine Corps procurement list.
This stage offers the greatest asymmetrical returns, and the window is currently open.
Core targets: TSLA, RKLB, KTOS, PATH, MP, ALB, ASTS
Tracks: Robotics, Autonomous Driving, Aerospace, Defense, Drones, Rare Earths
Phase Four: Software and AGI (Post-2028)
The final battle.
Microsoft’s annual capital expenditure will reach $190 billion, Google $190 billion, Amazon $200 billion, Meta $145 billion.
Google Cloud’s unfulfilled orders will exceed $460 billion.
The giants are building the foundations for AI software supremacy and AGI.
The cloud giants just set their capital expenditure plans for 2026: $725 billion.
That's nearly double compared to last year.
Microsoft, Google, Amazon, Meta, each exceeding $100 billion.
This isn't just hype; it's real cash being thrown around.
But the question is, where should the money flow?
Most folks are still eyeing the first phase targets, while the smart money has already shifted to phase three.
Phase One: Chips (2023-2025)
The groundwork for foundational infrastructure has been laid.
NVDA surged 39%, and INTC's Q1 earnings pushed the Philadelphia Semiconductor Index above 10,000 points.
Chips remain central, but the low-entry window has closed.
Entering now doesn’t mean you can’t profit, but the risk-reward ratio isn’t as favorable as in the past two years.
Core targets: NVDA, AMD, AVGO, INTC, MU, GLW
Tracks: Semiconductors, Storage, Optical Communication
Phase Two: Power and Supporting Infrastructure (2025-2027)
This is the phase most people are just starting to grasp.
VST, after its acquisition, has become the largest private power producer in the U.S., and GEV has more than doubled in a year.
MOD is providing cooling solutions for Nvidia, and GLW has jumped 74% year-to-date, with optical fiber demand exploding.
The SMR small nuclear reactor is a dark horse, with OKLO, BWXT, and NNE positioning themselves to supply power directly to data centers.
There’s still room in the sector, but the obvious targets have already completed their major upswings.
Core targets: VST, GEV, CEG, ANET, MOD, OKLO, BWXT, NNE
Tracks: Power, Grid, Cooling, Networking Equipment, Nuclear/SMR
Phase Three: Robotics, Aerospace, Defense (2026-2028)
AI is stepping out of the data center and into the physical world.
Most people will miss out on this phase.
Tesla is retrofitting its Fremont factory to produce humanoid robots Optimus, planning a capital expenditure of $25 billion, aiming for mass production in the second half of 2026.
Rocket Lab reported record revenue of $602 million, with unfulfilled orders at $1.85 billion.
KTOS’s Valkyrie drone made the U.S. Marine Corps procurement list.
This stage offers the greatest asymmetrical returns, and the window is currently open.
Core targets: TSLA, RKLB, KTOS, PATH, MP, ALB, ASTS
Tracks: Robotics, Autonomous Driving, Aerospace, Defense, Drones, Rare Earths
Phase Four: Software and AGI (Post-2028)
The final battle.
Microsoft’s annual capital expenditure will reach $190 billion, Google $190 billion, Amazon $200 billion, Meta $145 billion.
Google Cloud’s unfulfilled orders will exceed $460 billion.
The giants are building the foundations for AI software supremacy and AGI.
