AI Needs Power: Why Record Stocks Now Depend on the Physical Economy？

The S&P 500 and Nasdaq closed at record highs Tuesday as Treasury yields eased and oil stabilized. But the more important story was underneath the indexes: AMD is preparing a major 2027 supply increase, Marvell raised long-range AI chip forecasts, and Google signed a 3,590-megawatt power agreement with Constellation Energy.

Today’s Clear Markets follows the AI boom from chips into electricity, infrastructure and financing—and asks whether earnings and productivity can grow fast enough to justify the enormous capital now being committed.

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Key Takeaways
• S&P 500 rose 0.58% and Nasdaq 0.45%, with both closing at records as Treasury yields eased and oil stabilized.
• AMD plans to substantially increase chip supply in 2027, reinforcing evidence of strong AI demand while also pointing to future supply growth.
• Marvell raised its fiscal 2028 revenue forecast to about $20 billion and projected $70–$90 billion of fiscal 2031 revenue.
• Google contracted for 3,590 MW from Constellation; the agreement includes 890 MW from upgraded nuclear plants and more than $4.3 billion of Constellation investment.
• AI is becoming a physical-capital cycle involving chips, power, grids, cooling and financing—not just a software story.
• With third-quarter S&P 500 earnings expected to grow 30.6%, including 66.5% for technology, strong expectations make the market more sensitive to disappointment.