Remember when everyone was saying AI was overhyped? Yeah, about that…
The latest earnings reports just dropped, and spoiler alert: the AI boom is still very much booming. While the skeptics keep waiting for the bubble to burst, companies like ASML, Taiwan Semiconductor, and a bunch of other tech giants just served up another round of “hold my beer” moments.
The Numbers Don’t Lie (Even When We Wish They Would)
Let’s start with ASML – the company that makes the machines that make the chips that power your AI overlords. They just posted $6.28 billion in bookings and bumped their long-term growth target to 8-14% annually through 2030. Translation: they’re basically printing money by selling shovels during the AI gold rush.
Then there’s Taiwan Semiconductor (TSM), which is having the kind of quarter that makes other companies weep into their quarterly reports. Revenue jumped over 40% year-over-year, with AI and high-performance computing now accounting for 60% of their total revenue. That’s up from “just” over half a year ago. At this rate, they might as well rename themselves “AI Semiconductor.”
The Whole Gang’s Here
But wait, there’s more! (I know, I sound like a late-night infomercial, but bear with me.)
Lam Research is drowning in orders for chip-making equipment because everyone and their grandmother wants to build AI infrastructure. Rambus – yes, that Rambus – just had a record quarter selling memory interface chips because AI needs all the bandwidth it can get. Even Cadence Design Systems, which makes software for designing chips, has a record $7 billion backlog.
And here’s my favorite: Celestica, a contract manufacturer that used to be about as exciting as watching paint dry, just became an AI infrastructure darling. Their revenue shot up 28% because someone has to actually build all those server racks that house the AI magic.
The Pattern Is Pretty Clear
Across the board, we’re seeing the same story: AI demand is accelerating, margins are expanding, and management teams are basically doing victory laps in their earnings calls. It’s like watching a really expensive domino effect, except instead of falling down, everything keeps going up.
The skeptics keep saying “any day now” the AI bubble will pop. Meanwhile, these companies are posting results that would make a crypto bro jealous. We’re talking about trillion-dollar infrastructure buildouts, multi-year equipment upgrade cycles, and entirely new categories of silicon being invented.
What This Means for Your Portfolio
Look, I’m not saying throw your life savings at anything with “AI” in the name (please don’t do that). But the earnings don’t lie – this isn’t some flash-in-the-pan trend. We’re looking at what could be a multi-year supercycle that’s still in the early innings.
The companies making the picks and shovels for the AI gold rush are printing money, and they’re telling us demand is only getting stronger. Sometimes the obvious play is the right play.
So while everyone debates whether AI is overhyped, these companies are laughing all the way to the bank. And honestly? Good for them.