Big Tech is疯狂 adding computing power—how long can this US stock bull run last?
Anthropic has pushed compute spending to the gigawatt level, storage chips are also surging, and even Goldman Sachs has slapped a 5,000? target price on the S&P 500 directly up to 8,700.
In the past, the market watched how many GPUs were sold. Now the bottleneck in compute has shifted to the power grid and storage bandwidth. The compute gap expands hardware demand from pure computing capacity to electricity and massive data transmission—this is also why SanDisk and Micron have soared.
The underlying logic for institutions turning bullish is changing too.
Previously, bull markets were propped up by the Fed cutting rates to lift valuations. Now the rally is supported entirely by profits. In the first two quarters, S&P 500 earnings growth is nearly 30%. AI capital expenditures are genuinely showing up on companies’ balance sheets—not some vague, intangible concept.
For the short term: after the Fed’s rate hikes, rates are still too high, and the real economy is under pressure. The market will likely churn and shake out at elevated levels. But as long as the compute arms race among the giants can’t be halted, the downside room for tech stocks is very limited. This isn’t the 2000 tech bubble—any pullback is still a buying opportunity to see where the main players’ positioning is concentrated.
DYOR
Anthropic has pushed compute spending to the gigawatt level, storage chips are also surging, and even Goldman Sachs has slapped a 5,000? target price on the S&P 500 directly up to 8,700.
In the past, the market watched how many GPUs were sold. Now the bottleneck in compute has shifted to the power grid and storage bandwidth. The compute gap expands hardware demand from pure computing capacity to electricity and massive data transmission—this is also why SanDisk and Micron have soared.
The underlying logic for institutions turning bullish is changing too.
Previously, bull markets were propped up by the Fed cutting rates to lift valuations. Now the rally is supported entirely by profits. In the first two quarters, S&P 500 earnings growth is nearly 30%. AI capital expenditures are genuinely showing up on companies’ balance sheets—not some vague, intangible concept.
For the short term: after the Fed’s rate hikes, rates are still too high, and the real economy is under pressure. The market will likely churn and shake out at elevated levels. But as long as the compute arms race among the giants can’t be halted, the downside room for tech stocks is very limited. This isn’t the 2000 tech bubble—any pullback is still a buying opportunity to see where the main players’ positioning is concentrated.
DYOR
