Does the AI boom still have room to run?

AI-related stocks have pulled back as investors question whether the rally has gone too far, but the underlying buildout still looks early rather than exhausted. Demand remains strong, with token usage rising quickly and forcing hyperscalers to keep spending on data centers, chips, networking, power and memory.

That investment wave is creating opportunities across the AI infrastructure stack, especially in areas where bottlenecks are shifting and pricing power is improving. At the same time, returns on this capital spend are still uncertain, which means volatility may continue as markets reassess winners and losers. For portfolios, an active approach that stays exposed to durable parts of the theme may be better than turning defensive too soon.