Remember all those “AI is overhyped” takes floating around? Yeah, about that…
This earnings season just delivered a reality check to the skeptics, and spoiler alert: the AI boom isn’t slowing down. If anything, it’s hitting the gas pedal harder.
The Numbers Don’t Lie (Even When We Wish They Would)
Let’s start with ASML, the Dutch company that makes the machines that make the chips. Think of them as the ultimate middleman in the semiconductor food chain. Their bookings jumped to $6.28 billion – higher than expected – while their profit margins expanded to 52%. That’s not just good; that’s “we can’t keep up with demand” good.
Then there’s Taiwan Semiconductor (TSM), basically the factory floor of the tech world. Their revenue surged over 40% year-over-year, with AI and high-performance computing now making up 60% of their total business. A year ago, it was just over half. That’s not gradual growth – that’s a tidal wave.
The Whole Supply Chain is Getting Rich
But here’s where it gets interesting: it’s not just the headline companies crushing it. The entire AI ecosystem is printing money.
Lam Research makes the equipment that chip factories need to stay running. Their order books are so full they’re practically bursting. Rambus – a company most people have never heard of – just posted record revenue because someone needs to make sure all those AI chips can actually talk to memory fast enough.
Even Celestica, which basically assembles the boring hardware that houses all this fancy AI stuff, saw their communications segment sales jump 80%. Eighty percent! That’s not a typo.
The Plot Twist Nobody Saw Coming
Here’s what’s wild: every earnings call sounds like a broken record, but in the best way possible. CEO after CEO is saying the same thing – “AI demand shows no signs of slowing.” When was the last time you heard that kind of unanimity from corporate America about anything?
Cadence Design Systems, which makes the software that designs chips, has a record $7 billion backlog. That’s not just busy – that’s “we’re booked solid for the next few years” busy.
Why This Actually Matters
Look, we’ve all been burned by tech hype before. Remember the metaverse? Crypto? NFTs? But this feels different because the money is real, the margins are expanding, and the companies aren’t just talking about potential – they’re showing actual results.
The hyperscalers (Google, Microsoft, Amazon, Meta) are spending trillions on AI infrastructure. Not millions, not billions – trillions. That’s the kind of money that creates multi-year investment cycles, not flash-in-the-pan trends.
The Bottom Line
Every quarter, the AI skeptics predict the slowdown is coming. Every quarter, the earnings reports say “not today.” At some point, you have to wonder: maybe the skeptics are the ones who are wrong?
The AI buildout isn’t just surviving – it’s thriving. And if you’re still waiting for the bubble to burst, you might be waiting a very long time.
Because sometimes, the hype is actually real.