Is the AI Bull Market Moving Past Semiconductors?

Neoclouds like Nebius, CoreWeave, and IREN are showing classic signs of a micro bubble, and we trimmed our Nebius position. Here's where we think AI capital is heading next, and why it's moving up Nvidia's five-layer cake. Jensen Huang's five-layer cake frames the AI economy as energy, chips, infrastructure, models, and applications. Until now, the cake has been inverted: capital has flowed mostly to the bottom layers (energy, semiconductor manufacturing, and data center build-out), even though those sectors are a small share of global GDP. After the software selloff earlier in 2026, we're seeing early signs that the top layer (applications, devices, and services) is starting to drive real AI demand. In this video, we revisit our bull market framework: what drives secular growth, what signals slowing productivity from capital investment, and how "micro bubbles" form inside a healthy bull market. We explain why we think neoclouds, cybersecurity, and parts of the semiconductor rally got ahead of themselves. We also walk through the software supply chain hierarchy, including internet infrastructure built for AI agents and inference traffic, and explain why our recent investments have leaned toward end markets like video games. The semiconductor cycle is still the foundation of it all. The question is where the next dollar of AI capital earns its best return. If you want the reasoning behind more names like this one, Semiconductor Insider covers the process in more depth. Get access to all our research, weekly live Q&A events, and a growing set of tools to build your process: https://www.chipstockinvestor.com 📰 Why Chip Stock Investor Is Becoming a Software Business: https://chipstockinvestor.com/why-chip-stock-investor-is-becoming-a-software-business/ Linktree for all our socials: https://linktr.ee/chipstockinvestor If you found this video useful, please make sure to like and subscribe! 0:00 - Nvidia's Five-Layer Cake: Why the AI Trade Is Broadening 0:50 - The I