America’s Next Boom Is Just Getting Started

When I see the headlines about Big Tech spending $400 billion on artificial intelligence this year — and executives still saying it is not enough — I cannot help but smile.

Because this is exactly what we at American Prosperity have been preparing for.

For the past two years, I’ve said that AI is not a passing trend. It is an industrial revolution in real-time, and the companies building its foundation will reap decades of growth ahead.

Now, the proof is in the numbers.

Meta, Microsoft, Alphabet, Amazon, and even Apple are all increasing capital spending again in 2026. Together, they are building the infrastructure that will power the world’s next wave of productivity.

And despite the skeptics asking, “Are we in a bubble?” I believe we’re still in the early innings.

Meta is racing to expand its data center footprint.

Microsoft’s CFO Amy Hood said it bluntly: “We’ve been short on computing power for many quarters. Demand is increasing.”

Amazon’s CEO Andy Jassy told investors the same story: As fast as they build new capacity, they’re monetizing it. In other words, every new server and cooling system pays for itself almost instantly.

This isn’t speculative spending. It’s demand-driven investment.

Cloud computing, data centers, and AI infrastructure are not ideas on a whiteboard. They are physical systems being built right now — servers, semiconductors, and power grids stretching across America.

In 2023 and 2024, when others thought AI enthusiasm would fade, we saw the real story: an infrastructure build-out rivaling the highway boom of the 1950s.

Meta’s data centers in Louisiana, Microsoft’s expansions in Iowa, and Amazon’s clusters in Virginia are not short-term plays. They’re long-lived assets designed for decades of use.

Behind every headline about “AGI” or artificial general intelligence is a more profound truth: the U.S. is investing heavily in its own digital backbone.

That is bullish for construction firms, electrical component makers, network hardware companies, and energy producers.

This kind of capital cycle — one where demand exceeds capacity — is what drives profits for the best-positioned industrial and technology companies.

It’s the same pattern we saw during past American growth booms. 

When railroads connected the continent, steelmakers and suppliers prospered. When the internet took off in the 1990s, network equipment leaders like Cisco and Dell minted fortunes.

Today, we’re watching the same dynamic play out with AI infrastructure.

Meta’s capital spending surged to $72 billion this year — twice last year’s level — and CFO Susan Li said 2026 will be “notably larger.”

Microsoft and Amazon are both planning to double their data-center footprints within two years.

Investors who focus solely on near-term profits are missing the forest for the trees. The payoff from this spending will not be measured in quarters but in decades.

When the world’s most profitable companies all agree that they’re still behind on capacity, it tells you one thing — this cycle has years to run.

Every dollar spent now creates the foundation for trillions of dollars in future productivity.

The next generation of AI tools — from intelligent assistants to autonomous factories — will require exponentially more computing power, cooling systems, and connectivity. 

Those needs don’t disappear when the economy slows. They accelerate.

From day one, our focus has been on companies with real cash flows, proven leadership, and powerful tailwinds. 

That’s why we looked beyond the hype of chatbots and focused instead on the businesses supplying the picks and shovels for the AI revolution.

Companies such as Arista Networks (ANET) and Brookfield Corp. (BN) were easy to overlook when chip stocks dominated the headlines. 

But these are the companies enabling the build-out of global digital infrastructure — and their earnings growth proves it.

While others speculated on who might “win AI,” we invested in those who profit no matter who wins.

That’s the American Prosperity approach. We don’t chase bubbles. We build wealth by owning the real businesses behind historic transformations.

AI is not just another tech cycle. It’s the foundation for the next era of American productivity — one that will touch every corner of the economy.

$400 billion of spending sounds enormous, but in context, it’s only the down payment. 

As NVIDIA CEO Jensen Huang said at his GTC keynote more than a year ago, every company is on its way to becoming an AI company.

We are living through a moment comparable to the electrification of the 1920s or the internet boom of the 1990s.

And for disciplined investors who stay focused on value, leadership, and long-term trends, the next decade could be one of the most prosperous in American history.

The skeptics will always ask if it’s a bubble. But the real story is that America is building again — in steel, silicon, and software.

That’s not a bubble. That’s progress. And it’s just getting started.

If you want to join us in investing in the real AI economy, you need to subscribe to the American Prosperity Report. Click here now — and start risk-free with our 30-day money-back guarantee.

If you have questions, you can send them to me at [email protected].

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Regards,

Charles Mizrahi
Prosperity Insider