MSFT is nearly flat over the last 1 years. However, this sector is obsessing over the market more than ever. Every time AMZN or GOOGL reports earnings, the exact same question pops up. Is pouring all this money into AI infrastructure actually going to generate a return?

I keep watching this space because the narrative has fundamentally changed. We are no longer talking about a software cycle. Cloud is now a massive, capital-intensive utility cycle tying together power, chips, networking, and physical data centers.

Hyperscalers are on pace to spend nearly $700 billion on AI infrastructure in 2026 alone. The underlying numbers are staggering. The global IaaS market already hit $171.8 billion back in 2024. Now that AI inference is moving into live production alongside training, the demand for GPU instances, storage, and high-bandwidth networks is hitting all at once.

The bottleneck has completely shifted. Getting servers is fine, but finding power, permits, and networking is the real nightmare.…