Wall Street Thinks AI Is Slowing… The Numbers Say Otherwise

For the last few weeks, the market has been telling investors one story. AI is slowing down, chips are falling, memory is falling, photonics is falling, AI infrastructure is falling. When I started reading the earnings reports, I found a completely different story y'all. And I've said this before, but we got to look at the numbers. TSMC, record demand, Mike Ryan, record demand, ASML, record demand, and backlog. So now we have a problem. The market is saying one thing, the companies are saying another thing, and both can't be right. And whenever Wall Street and the business disagree, I got to stop watching the headlines and I got to start watching the numbers. Because somewhere inside there's a disconnect. And that's where the opportunity is. Not to mention, we have a president that has increased some bombing. So today, I'm going to show you why I believe this AI pullback has less to do with weakening demand and more to do with spreading financial fear. I'm going to break down three companies that are next generation AI data centers and explain why I believe they're sitting on some of the fastest growing parts of the AI economic cycle. But I also got to break down the facts on how this war is impacting what we're doing. And even though it's fear, it's keeping us from seeing the vision. And if it's not promoting the war, I'm just saying that's out of our hands. So we have to truly take advantage of this opportunity that's in front of us because most people missed the last time. So if you bought a Wall Street trap, make sure you like, subscribe, and share this with somebody because this is going to be really important. I definitely don't want to waste your time and help us get to 2000 likes, y'all, because that helps us truly, truly, truly get up in the algorithm and help the page grow. Let's go. We know for a fact that the war is 100% increased the fear in the market. The market went from being neutral. The fear and greed index went from being neutral. The VIX, which measures volatility, all spike as of the last couple of weeks. Well, maybe the last week or so. Well, as of now, the United States have bombed Iran 11 straight days. And during those days, you had some bounces here and there. Iran is saying, yo, we rocking out and we're going to hit Saudi Arabia. And Trump is now threatening to now destroy infrastructure, which is bridges and power plants. And in case you don't know, those go against rules of engagement. Those are truly what's considered war crimes. You cannot destroy a country's bridges or power plants or water supply system because that becomes what's called a crime of war. So we see Trump doing this thing all over again, which is intensifying the threats, intensifying the attacks. And I'm not saying he's pump faking because people like to say he's chicken out Trump. And I don't like to say that because we don't like war because we don't need to see innocent people or we don't need to see people get killed behind us making money in this market. Right. But we also know that those hostilities bring fear in a market. And so what happens is now we're seeing crude oil spike back to ninety five dollars, going back to one hundred dollars, which means you and I, the American people are going to feel that pressure. Now, with that pressure comes, you know, if that stays up now, the Fed has to now look at doing what hiking rates, which now puts more fear in the market. Now, I'm not trying to scare you, but I want to paint a picture so you can understand what's going on. Yes, I'm going to break down the three companies, but I got to help you understand what's at bay right here. And this is the Trump playbook. Right. And I'm not saying it's the playbook where this is going to make us a lot of money. I'm saying this is the playbook that he follows. Right. He said he wants to do a deal. Somebody fights back. He starts to bomb. Sometimes he doesn't. Sometimes he can get away without bombing. This time he's at the bomb. We are 11 straight days. We're at the bomb. And I want you to understand that's going to cost us money. As Americans, we are actually paying for that. On top of that, the Trump administration is now doing what they are now putting more tariffs on. Why? Because the tariffs got struck down. They paid about $83 billion in tariff refunds to companies. And those companies got refunds. But us as American people did get no refunds on that. We still footing the bill. And so now they're going to put more tariffs on people. You see him threatening Canada. You see him threatening other countries. And then that's to get some of that money back. Now I'm saying all that before I get into the AI and before I get into the stocks, because I need you to understand this is where the volatility is coming from. Also, the volatility is coming from Korea. Well, if you don't know, the Korean stock market is about 75 to 80% memory stocks, which is SK hynix, Samsung companies like that. Well, that has that country stock market has now went into a bear market. If you want to look at that, look at EWY. That's the Korean stock ETF. You can definitely check that out because our memory stocks are also attached to that. And because the Korean traders are also attached to that, this is why you see so much volatility in the memory sector. Now, I want to just paint that picture for you so you understand exactly what's going on in the market, where the volatility come from. And now we get to navigate. So let's start with TSMC. Now, if you're new to investing, you may not know the name, but chances are you've owned products that wouldn't exist without them. TSMC doesn't just design chips, they manufacture them and think of them as the world's most advanced chip factory. So companies like Nvidia, AMD, Apple and Broadcom, Qualcomm, right? And dozens of other semiconductor companies design the chips. That's what they do it for. But TSMC actually builds them. In fact, they manufactured the majority, about 92% of the world's most semiconductor chips, right? So what I want you to know is where the AI is growing. I don't want you to look at social media and get confused. I don't even want to start with Nvidia. I started with TSMC because they're one of the first companies to see orders coming in. Now listen to me, and that's what they tell us. They reported another outstanding quarter, $40 billion in revenue, up about 30% over the last year. Their earnings surged 70%. And then it would maybe be the most important thing is they didn't lower expectations. They raised the outlook for the rest of the year. Now think about what that means. If AI demand is actually slowing, would the company manufacturing the world's most advanced chips be increasing guidance? Probably not. They'd be warning us. Instead, they told us that the demand remains increasingly strong. And that's not all. Some customers are reportedly are even waiting one year to get their chips manufactured. That tells me something really important. Demand isn't disappearing. Supply is struggling to actually catch up. And that's a very different story than the stock market and the headlines are telling us. Now, if AI demand is still growing, then where is the next wave of spending coming from? Now, I don't think it's just chips anymore. I think that Wall Street is beginning to shift toward an entirely new layer of AI infrastructure. This is my personal opinion, and we've seen some headlines that support that. But that could become one of the most fastest growing AI economies in over a decade. And it's called Neo Clouds. Right? And once you understand what they do, which I'll break down, you'll realize why companies like NBIS, Irene, and Hut8, why I'm really bullish on them. And so let's get into that a little more. Now, let me make it simple. Imagine if you're starting an AI company tomorrow, and you have an incredible idea. You're building the next chat GPT, or you're building software for hospitals. Maybe you're creating robots. And now you have a problem. You don't understand or you don't own thousands of NVIDIA GPUs. You don't own a billion dollar data center. You don't own enough electricity to change or train an AI model. So, where do you go? Well, five years ago, it would have been Amazon's AWS or Microsoft Azure or Google Cloud. Now, just bear with me. Those companies rent business computing power. They're the traditional cloud providers. But AI changed the rules because AI doesn't just need cloud computing. It needs enormous amounts of computing from GPUs. Now, that's different. Now, training an AI model requires thousands, sometimes tens of thousands of GPUs working together at exactly the same time. Traditional cloud wasn't designed for that. So, a new business model evolved. That's where the NeoCloud came from. Just to give you an idea of that, I needed to do that before I can get into what I need to get into next. So, just rock with me. So, the first company on the list is NBIS. They are the AI landlord. So, let's start with that company first. Again, the ticker symbol is NBIS. Now, when most people hear cloud company, they immediately think Amazon, Microsoft, Google. And for years, you probably were right. Those companies built the cloud economy. But again, things are changing. They created the digital office building where businesses store files, hosted websites, and ran applications. But again, AI changed what consumers actually needed. Today, companies aren't asking for more storage. They're asking for more compute. And that's an entirely different business model. Think about open AI. Anthropic perplexity. The next generation of robotics companies. Autonomous driving. Drug discovery companies. They're all asking the same question. Where can I find more GPUs to train my models? That's the problem that NBIS solves. They don't sell servers. They sell time, which is extremely important. So, imagine walking into a Ferrari, right? Walking to a Ferrari and you don't buy the factory. You don't buy the engine. You rent the access to the fastest machines available. That's NBIS. They're bringing one of the most valuable assets in technology today. NVIDIA GPUs. And not just one, the entire cluster, which is a big rack. Thousands of GPUs connected together, ready to train massive language models, LLM. Ready to, you know, produce interface. Ready to enterprise AI. That's a very different business than traditional cloud computing. Think about owning your own AI data center. First, you need to buy the land and then secure electricity. And then buy the building. Then install a network. And then buy thousands of GPUs. And then hire engineers. Ain't nobody got time for that. But then you gotta wait months, sometimes years. But can you even turn it on? But now that NBIS exists, a customer signs up, logs in, starts training AI almost immediately. And that's why demand has exploded. They're eliminating time. And in AI, time is money. Now, here's what impressed me. The company isn't talking about surviving. They're talking about expanding. Management has clues in investing aggressively in GPUs, AI infrastructure, and cloud to help develop new data centers. And that's what I wanted to see. When businesses continue to invest during uncertainty, it's usually because they're seeing something the market isn't. And so, when I think about NBIS, Amazon rents office space. NBIS rents the AI factories. And if AI keeps growing, the way that companies like NVIDIA and TSMC suggest, those factories will provide a ton, a ton of value. Now, the next company on my list is IRENE, the company that understood the real bottleneck. For years, everyone believed GPUs were the scarcest asset. Today, we think there is something even more valuable. Electricity. And now, you can order more chips. Eventually, they'll be delivered. You can't create another gigawatt of power overnight. But that's why IRENE caught my attention. But they started off as a Bitcoin, from Bitcoin to AI. Most people think of IRENE as a Bitcoin miner. Well, that was yesterday's story. Today, management is transforming the company into an AI infrastructure business because they already own something incredible. Something incredibly difficult to build. Power. Large-scale power. Land. Cooling. Fiber. Infrastructure. Those assets happen to be exactly what AI companies need. So, instead of only mining Bitcoin, they're now monetizing the same assets by renting GPU computers. And there's a much larger opportunity there. And at the end of the day, we ended the game for money. So, think about it like this. Owning a hotel for years, and you only rented out rooms on the weekend. Now, tourism explodes. And instead of building a new hotel, you simply fill the empty rooms up every single day. That's essentially what IRENE is doing. They're taking AI infrastructure that they already control, and they're opening it to one of the fastest-growing industries in the world. I like to call that capital efficiency. So, the company has announced approximately $2.8 billion in contracts under AI. And that's in revenue coming in over the next couple of years. That tells me that customers aren't experimenting anymore. They're committing. And that's a huge difference because now they're committing to IRENE. Now, the market used to value IRENE based on Bitcoin. And I think over time, it's going to value the company based on AI infrastructure. And those are two valuation stories that go in two different directions. Now, we've talked about compute, and we've talked about electricity. But what if I told you a company has already signed contracts stretching more than a decade into the future? Yeah, that's where the third company comes in at. Hut 8. Think like this. Most investors still put Hut 8 in one bucket. Again, Bitcoin mining. I think that's becoming outdated because management is repositioning the business to a long-term digital infrastructure. Let's follow the contracts. One announcement completely changed how I personally view this company. Hut signed a 15-year data center lease valued at $9.8 billion, bringing the contract's company value to $20 billion. Think about that. That's not someone renting a space for six months. That's a long-term infrastructure. Those are contracts that are creating visibility. And that's exactly what institutional investors are looking for and seeing. Now, Hut 8 isn't simply filling buildings with computers. They're building campuses designed to support AI for years. Power. Cooling. Networking. Security. Land. Everything required before the first GPU is ever switched on. This is exactly why facilities are becoming more strategic with these assets. So, here's a framework that I want you to remember. The AI economy doesn't stop at NVIDIA. It keeps going. Yes, NVIDIA does build the brain. But NeoCloud provides the factories. Irene secures the power. Hut 8 builds the campuses. And together, they create infrastructure that allows artificial intelligence to exist. And that's what makes them important. And that's why I'm really super bullish on this buildup. So, let's zoom out for a minute. We've talked about the fear. And we've looked at the earnings. We've followed the money. And we've identified, well, I believe Wall Street is quietly shifting its attention. And the question now becomes, what does all of this mean for us as long-term investors? It means that opportunities like this, when the market pulls back, are great opportunities for us. And so, what do we need to do is find companies that we like and scale in those positions. Never go all-in because we can't predict what the market is going to do. But if we read the numbers and not the headlines, we can position ourselves exactly where we need to be at. If you got some value from this, man, I would love if you share this out with somebody. And I would also love if you commented in the chat. It's your boy, The Wall Street Trapper. Salute.