NVIDIA's performance list before the release of the "AI Bull Market Revelation": GPUs and TPUs no longer dominate the AI wave. AI applications and "key bottlenecks" shine more and more.

The stock market strategy team of the well-known investment firm Wedbush on Wall Street pointed out that the global AI chip superpower NVIDIA Corporation(NVDA.US), considered to be the "most important stock on Earth," is expected to announce its first-quarter earnings for the 2026 calendar year next week. This highly anticipated earnings report should serve as another catalyst for the "AI bull market narrative" that is driving the global technology sector and the trajectory of the global stock market bull market. Even before NVIDIA Corporation officially announces its quarterly performance and future outlook, the global technology stock earnings season that began in April has already become a "super alarm" for those who are indifferent to the AI revolution or skeptical about cutting-edge technology. As of last Friday's closing of the US stock market, strong employment data and a trading frenzy surrounding AI computing power themes have jointly driven the S&P 500 and Nasdaq 100 to new historical highs. The S&P 500 index has increased for six consecutive weeks. The Philadelphia Semiconductor Index, which covers leading companies in the global AI computing power industry chain such as NVIDIA Corporation, AMD, Intel Corporation, and Micron, has risen by 11% in a week, also rising for six consecutive weeks and skyrocketing nearly 250% from its low point in April, with its valuation reaching a new historical high. Under the unprecedented wave of AI infrastructure development, the Korean stock market has seen even more exuberant growth. The benchmark Kospi Composite Index led the Asia-Pacific markets on Monday amid rising oil prices and escalating tensions between the US and Iran. The index has soared by over 85% this year, surpassing all other global markets, making it the most frenetic stock market in the world so far in 2026. Two Korean super storage chip giants, Samsung Electronics and SK Hynix, which together account for nearly 50% of the weight of the Kospi Composite Index, have attracted global funds to the Korean stock market. The Kospi Composite Index has surged ahead of the 76% wild gain of last year that led global stock markets, but unlike 2025, when it achieved a 76% gain for the entire year, the 2026 gain has been achieved in less than five months since the beginning of the year. According to leading market analysts at Wedbush, Morgan Stanley, JPMorgan, and Yardeni Research, the global stock market frenzy driven by AI computing power is far from over. Ed Yardeni, founder of Yardeni Research, predicts that the S&P 500 index will surpass 8000 points by the end of the year and reach 10,000 points within three years, emphasizing the trend of rising profits. In contrast, the S&P 500 index closed at 7398 points last Friday. Institutions such as HSBC and CFRA have also raised their target prices, believing that profit expansion around AI applications and AI computing infrastructure is the core driver. These bullish forces believe that despite short-term overbought signals in the technical aspects, there is still room for further stock market gains, as optimistic expectations for AI dividends support high valuation sectors. Wedbush: The ongoing global technology stock earnings season has already served as a "super alarm" for AI skeptics before the release of NVIDIA Corporation's earnings In a research report, Wedbush stated that the ongoing global technology stock earnings season in April has already become a "super alarm" for observers and skeptics of the AI revolution before NVIDIA Corporation officially announces its quarterly performance and future outlook. Wedbush emphasized the "monster-like amazing performance" of AMD, the leader in data center CPUs and the strongest competitor to NVIDIA Corporation's AI GPUs, as well as the growing AI application/AI intelligence penetration cases in enterprise software companies such as Palantir, Datadog, Snowflake, and ServiceNow. The stock market strategy team at Wedbush, led by senior strategist Dan Ives, stated in an investor report released on Monday: "We still believe that the monetization phase of the AI era has just begun, and the winners are not limited to AI computing infrastructure leaders such as AMD, Intel Corporation, NVIDIA Corporation, and Micron, but should also be significant positives for the large cloud computing companies focusing on the next phase of AI hardware and software infrastructure architecture construction. We believe that Wall Street severely underestimates the future profits of Microsoft Corporation/Azure and Amazon.com, Inc./AWS in the next year's AI-driven cloud computing business growth and the potential for AI transactions to be profitable... at the software level, the recent positive growth data for enterprise AI applications/AI intelligence bodies, such as Palantir, Datadog, and Innodata, indicate that the coming wave of AI demand driven by AI intelligent agent use cases is about to surge." Ives and other strategists believe that as more international investors are starting to recognize the dominance of AI leaders like Anthropic and OpenAI, who have not yet gone public, in the AI application series that does not pose a "doomsday" effect on traditional software giants also focusing on AI applications, the stock market will likely continue to rise by 10% to 12% by the end of the year. They also have a strong optimism for major cybersecurity software companies such as CrowdStrike, Palo Alto Networks, Zscaler, and Rubrik. They added: "So far, multiple performance exchanges with CIOs and CISOs have shown that the powerful large language models (LLMs) of Anthropic and OpenAI have created strong positive catalysts for the cybersecurity industry. Budgets for enterprises will significantly increase in the next few quarters, as real coverage, threat factors, and AI agent workforces expand. The key is that AI will not reduce the strong demand for terminal points (and their suppliers), identity, secure cloud, and SOC automation; instead, with more enterprises deploying AI agent tools driven by LLMs, the demand for real-time monitoring of AI agent workflows, identity governance, and zero-trust execution will increase exponentially, making network security platforms a key implementation layer for AI rather than a sacrificial lamb." Companies such as Microsoft Corporation, Amazon.com, Inc., Snowflake, Palantir, and Datadog are easier to see as big winners in the AI frenzy not just because they are "large companies with strong fundamentals," but also because they accumulate data assets and combine them with "AI + core operations processes" and have high-quality fundamentals, while also occupying several layers that are difficult to replicate in enterprise AI deployments: cloud infrastructure, system entry points, identity and security, data pedestals, distribution channels, and operations processes strongly tied to employee daily work. As enterprise AI budgets prioritize large cloud computing platforms and model layers since the AI penetration and widespread adoption of agent-based AI intelligent bodies have significantly increased CPU demand, this means that platform software giants will have a stronger fortress under the boost of cutting-edge AI technologies such as AI agent workflows, while single-function SaaS companies face the pressure of being thoroughly disrupted. In the process of enterprises transitioning from AI experiments to formal deployments, budgets will prioritize platforms that are closest to core systems, core data assets, and core workflows, i.e., platform software giants, rather than single-function SaaS. The "AI bull market narrative" that propels the global stock market bull market still has a long way to go Hedge fund legend Paul Tudor Jones has stated that the AI-driven US stock market bull market has not reached its peak yet, and the current stage of AI technology development can be compared to the early commercialization of the Internet in 1995. He predicts that this super AI bull market has completed about 50% to 60% of its journey and can continue for another year or two. Jones sees Anthropic's release of the Claude large model earlier this year as a milestone in the AI revolution, comparable to the productivity surge during Microsoft Corporation's rise in the 1980s, and notes that the market rally is still supported by productivity miracles, but there are noticeable valuation risks at the end of the bull market. Overall, he confirms that the AI computing power infrastructure sector and related AI computing industry chain (AI chips, storage chips, cloud computing, and generative AI application leaders, etc.) still have upward potential and reminds investors to pay attention to potential overvaluation and correction signals. Jones has personally increased his holdings in AI assets, diversifying them in a "basket" manner, reflecting a strategic approach that balances growth opportunities and risk management in a bull market. Since 2026, stocks related to the leaders in the AI computing power industry chain have become the main engines driving the S&P 500 and Nasdaq indices, as well as significant rises in global stock markets. The core logic behind this is that with companies like Anthropic and OpenAI increasing their demand for AI computing power almost indefinitely, investors' bullish sentiments towards AI computing power "key bottlenecks" have continued to rise. This includes GPU, CPU, storage chips, and optical communication technologies, among other core AI infrastructure components. Analysts on Wall Street generally believe that these bottleneck effects will persist at least until 2027, supporting the strong continuation of this global tech stock bull market. The rapid penetration and popularization of agent-based AI intelligent bodies that heavily rely on long-term task processing have significantly increased the demand for CPUs, providing valuation reevaluation opportunities for CPU manufacturers such as Intel Corporation and AMD; the scarcity of storage chips and high-bandwidth memory (HBM) requirements have propelled stock prices of companies such as Micron, Samsung, and SK Hynix to historical highs; the massive construction of AI data centers has continued to expand the coverage of optical communication/interconnection technologies, benefiting technology companies closely associated with "light" such as Lumentum. According to major financial institutions such as Morgan Stanley, the main narrative of AI computing power investment is shifting from "competition among AI GPU/TPU (AI ASIC) solitary computing power" to "AI agent-driven full-stack AI systems," where the winners could potentially be the optical interconnection industry chain, data center CPUs, and storage chips. In this shift of the AI main narrative, optical interconnection industry chains, data center CPUs, and storage chips may be the biggest winnerswhether it's a cluster of NVIDIA Corporation AI GPU computing infrastructure or an Alphabet Inc. Class C TPU cluster (TPU representing AI ASIC technology), advanced data center CPUs, optical interconnection devices, and high-performance storage chips will all be essential components. Analysis data from Jefferies Financial Group Inc. shows that the market rally driven by leaders in the AI computing power industry chain is primarily driven by profit growth rather than PE expansion, enhancing the sustainability of the uptrend. Expected profits for the broad AI computing power infrastructure sector in the US stock market in 2026 have increased by over 30% since mid-2025, with a projected compound annual earnings growth rate of 38.5% from 2026 to 2027, compared to 11.9% for non-AI computing power sectors. There are significant differences in performance among subsectors: stocks related to AI servers, optical components, and storage, which are centered around AI GPU/AI ASIC/CPU data center AI servers, are the most attractive in terms of valuation. This also means that investors are prioritizing those stocks in the most core hardware components of AI data centers that are in high demand, such as optical interconnection technology as a sub-theme of AI investments and popular investment themes benefitting from the AI infrastructure construction frenzystorage chips. Wall Street's best-known bull, Ed Yardeni, founder of Yardeni Research, predicts that the S&P 500 index will surpass 8000 points by the end of the year and reach 10,000 points within three years, emphasizing the trend of rising profits. Institutions such as HSBC and CFRA have also raised their target prices, believing that profit expansion around AI applications and AI computing infrastructure is the core driver. JPMorgan, the largest commercial bank on Wall Street, has made significant upward adjustments to the target points of the benchmark Kospi Composite Index in South Korea less than a month apart, with the core logic undoubtedly being the continuation of the bull market storyline fueled by the AI infrastructure frenzy and the "super cycle of storage chips." The bank has raised the Kospi Composite Index benchmark target to 9,000 points and significantly raised its target under the bull market scenario to the epic mark of 10,000 points, implying a potential 33% increase from the last Friday closing point. In comparison, the previously set benchmark and bull market targets in late April were 7,000 points and 8,500 points, respectively.