Wall Street shifts toward AI, infrastructure and policy themes

AI infrastructure reshapes semiconductor and equipment demand

A cluster of updates highlights how hyperscale AI buildouts are cascading through the chip and equipment supply chain. Broadcom is projected to dominate the custom AI chip market as Microsoft, Google, Amazon and Meta expand in-house AI server compute ASIC programs. One report says Broadcom could hold about 60% projected market share in AI server compute ASICs by 2027, with shipments expected to triple. The company is described as a primary supplier for Microsoft’s Maia AI chips and a key partner in multi‑year data center buildouts, tying its outlook closely to hyperscaler infrastructure plans.

Applied Materials is also drawing renewed attention. Multiple major analysts have recently upgraded the stock, citing rising AI-driven demand and higher semiconductor capital spending. Applied Materials is positioned at the center of equipment supply for chipmakers expanding capacity for AI workloads. However, one assessment flags that its shares trade about 6% above the average analyst target and roughly 140% above an estimated fair value, leaving limited valuation cushion despite strong momentum and a roughly 28% 30‑day price gain into the news.

At the component level, Dover reported that fourth‑quarter profit and revenue rose on data center‑led demand for its liquid cooling products. Profit at its Pumps & Process Solutions unit, which makes thermal connectors for data center cooling systems, climbed to $583.6 million from $479.1 million a year earlier. Overall revenue grew 9% to $2.1 billion, and adjusted quarterly earnings per share of $2.51 slightly topped consensus. Dover forecasts 2026 adjusted EPS of $10.45 to $10.65 and revenue growth of about 5% to 7%, underscoring how AI computing needs are pulling in industrial suppliers beyond core semiconductors.

AI capex pressures cloud and software valuations

Investors are reacting unevenly to heavy AI and cloud-related spending by software and platform leaders. Microsoft shares fell as much as 7% after reporting stronger‑than‑expected quarterly revenue of $81.3 billion and adjusted EPS of $4.14. Commentary highlighted concerns over slowing Azure momentum—revenue was up 39%, only marginally above expectations and slightly below the prior quarter’s pace—and elevated capital expenditure on AI data centers. Microsoft disclosed that its remaining performance obligations, which represent signed but undelivered contracts, surpassed $600 billion, with 45% tied to OpenAI and the balance to customers including Anthropic and others.

A separate premarket snapshot showed the broader software sector selling off in sympathy. SAP slid roughly 16% after an update in which its cloud backlog and 2026 cloud revenue outlook missed forecasts, despite in‑line fourth‑quarter revenue. The weakness in SAP shares, which have already retreated from mid‑2025 peaks, weighed on peers: Datadog, Atlassian, Workday, Snowflake, Salesforce, MongoDB and Adobe were all indicated down between about 2.6% and 5.5% in early U.S. trading. Analysts framed the moves as a reset of expectations around how durable cloud and AI‑related spending will be, particularly when coupled with rising cost bases.

Intuitive Surgical illustrates how strong operating execution does not fully resolve valuation debate. One summary notes that analysts remain split on whether the stock is a 'buy' or 'hold' despite strong momentum in its robotic surgery business and expansion of installed systems and procedures. This divergence underscores a broader pattern in high‑growth software and med‑tech names: markets are increasingly sensitive to entry price and multiple, even where fundamentals remain solid.

Banks and corporates line up behind new U.S. ‘Trump Accounts’

In U.S. savings and benefits policy, a new federal initiative dubbed 'Trump Accounts' is gaining traction with large employers. The program calls for the government to seed a tax‑preferred account with $1,000 for each eligible child born in the U.S. between January 1, 2025, and December 31, 2028, with assets invested in an index fund. Families can contribute up to $5,000 per child per year, excluding the government’s deposit, and employers can contribute up to $2,500 annually tax‑free. Withdrawals are generally restricted until the child turns 18.

Bank of America and JPMorgan Chase said they will match the government’s $1,000 contribution for eligible employees’ children who open Trump Accounts, and Bank of America will also allow pre‑tax employee contributions. Other corporates—including Intel, Visa, Charles Schwab, BlackRock, BNY, Charter Communications and others—have announced similar commitments. Intel framed its match as part of its 'longstanding commitment to investing in our people', while Visa will allow cardholders to route credit card rewards into the accounts.

Outside the corporate sector, Turning Point USA said it would match the federal government’s $1,000 contribution for eligible employees’ newborns, and technology entrepreneur Michael Dell and his wife Susan pledged $250 to each Trump Account for 25 million American children, a $6.25 billion commitment. Treasury Secretary Scott Bessent said the goal is to give families a long‑term, tax‑advantaged way to save for housing, college, retirement and other needs, while President Trump described the accounts as a tool to 'help bring the hope and prosperity to every community.'

Gold, silver and the dollar send mixed macro signals

Precious metals markets are diverging sharply from U.S. dollar trends and parts of the digital asset space. Gold surged to $5,500 per ounce, up more than 20% in January and on track for its strongest monthly performance since January 1980. Silver climbed above $117 per ounce, up about 55% for the month—the strongest monthly rise on record. Platinum crossed $2,900 per ounce for the first time and is up 33% this month, while palladium hit a four‑year high with year‑to‑date gains above 22%. Copper also set a record at $6.30 per pound.

The moves came as the U.S. dollar index fell to its lowest level in four years, more than 10% below its 2025 highs. Analysts cited global central bank diversification away from U.S. assets, widening fiscal deficits, recurring questions over Federal Reserve independence and expectations of further policy easing as headwinds for the dollar. Fed Chair Jerome Powell, after leaving the policy rate unchanged at 3.5% to 3.75%, downplayed the macro significance of the metals rally and rejected the notion that the Fed is losing credibility, emphasizing that officials 'do not get spun up over particular asset price changes.'

Physical silver demand is also accelerating. A bullion dealer reported that one‑ounce silver coin sales rose 158% and one‑kilogram bar demand grew 550% over roughly four months, with a 737% surge in overall silver sales. Google search interest for phrases such as 'how to buy silver online' has climbed sharply, while the gold‑silver ratio has fallen to around 45:1, its lowest level since 2011. Some commentary links the silver and gold rallies to geopolitical tensions, inflation concerns and ongoing supply deficits, with green technologies and AI cited as additional structural demand drivers.

Selective resilience in crypto and alt assets

In crypto‑linked markets, Solana‑based exchange‑traded products are seeing steady inflows despite price volatility. Data from Farside Investors show Solana ETFs added $6.7 million in the latest week, bringing total assets under management to $689.8 million across vehicles from Bitwise, VanEck, Fidelity, 21Shares, Franklin Templeton and Grayscale. Solana ETFs have attracted $17 million of net inflows over the prior week, contrasting with a combined $1.6 billion of outflows from Bitcoin and Ethereum funds, according to CoinShares.

SOL, however, has been under pressure, trading around $122.74—down 3.6% in 24 hours and 5.6% over the past month. Market participants on prediction platforms recently shifted to see a higher probability that silver will reach $150 per ounce before Solana does, reflecting the strength of the metals rally relative to altcoins. Still, blockchain analytics firm CryptoQuant highlighted that altcoin deposits have climbed to their highest in months, led by assets such as Chainlink, Shiba Inu, Axie Infinity, Aave and Uniswap, suggesting that 'underlying network and exchange participation remains strong' even as prices whipsaw.