It’s no secret tech stocks have been the biggest victims of Trump’s 2025 trade war. The CNBC Magnificent 7 Index is down over 24% in 2025 so far – showing no signs of bottoming. So, it comes as no surprise to see increasing number of headlines and commentary declaring that the AI Bubble has popped. Or something along those lines. But I think these fears are reactionary and overblown. Here’s why…
Just look at what the biggest players in the AI boom are saying and doing…
Taiwan Semiconductor (TSMC) is arguably the most important company in the global AI supply chain.
If a company is building AI hardware, there’s a very good chance TSMC is their foundry. They make the chips that power ChatGPT, Tesla’s Dojo,
Meta’s AI research clusters, Microsoft’s Azure supercomputers, and more.
Most of all, TSM dominates the global foundry industry with a 67.4% market share compared to Samsung’s – its biggest competitor – 8.1%.
Now, late last week, TSM reported first quarter numbers that smashed analyst’s estimates.
And when TSMC says demand is strong, it’s not just good news for them. It’s good news for the entire AI sector.
Management also reiterated buying behaviour from their customers hasn’t changed despite the escalating global trade war.
America’s AI infrastructure rollout is just getting started…
While there have been recent concerns surrounding AI data centre developments, specifically a note released from Wells Fargo analyst’s – citing “industry sources” – warned Microsoft and Amazon have paused lease agreements for new data centres.
The good news is Amazon’s Vice President of Global Data Centres Kevin Miller recently addressed this saying: “First and foremost, we continue to see strong demand for both Generative AI and foundational workloads on AWS.”
And Miller confirmed the company’s expansion outlook hasn’t changed.
More importantly, Nvidia recently announced plans to invest up to half a trillion dollars into America’s AI infrastructure over the next four years.
This is already in the works. Production of Nvidia’s Blackwell AI chip has officially begun production at TSM’s new US plant.
Nvidia will also build supercomputer manufacturing facilities in Texas through partnerships with Foxconn and Wistron. Plus, the AI leader is teaming up with Amkor and Siliconware Precision Industries to develop packaging and testing operations in Arizona.
Nvidia may be the headliner, but it’s not the only tech giant committed to America’s AI infrastructure rollout.
Apple’s pledged to invest $500 billion, which includes the construction of a massive AI server facility in Houston.
Meta is pumping $10 billion into its largest-ever data centre campus in northeast Louisiana, dedicated exclusively to AI development.
And there is OpenAI, Oracle, SoftBank and others that have teamed up under the White House’s Project Stargate, pledging to invest up to $500 billion into AI infrastructure and innovation hubs across the US.
These developments will take time to roll out but these are some of the most important companies in the world and they aren’t shying away from AI development.
In fact, the crash in AI stocks looks overdone. And a buying opportunity is on the horizon. Keep an eye on South African Investor for the best investment opportunities.
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