Key Points
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Amazon is investing over $125 billion in AI by 2026, shifting its focus from traditional IT spending, which currently accounts for 85% of its budget.
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Taiwan Semiconductor Manufacturing is responsible for 85% of global start-up semiconductor prototypes and reported a 21% increase in sales year over year.
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The S&P 500 is trading at a CAPE ratio of nearly 40, the highest in over a decade.
In a notable shift towards artificial intelligence, Amazon plans to invest more than $125 billion by 2026, as CEO Andy Jassy indicates a significant move from on-premises IT spending to cloud-based solutions. This strategic investment aims to enhance Amazon’s infrastructure, spanning its e-commerce, cloud services, and advertising sectors.
Meanwhile, Taiwan Semiconductor Manufacturing (TSMC) remains a critical supplier in the AI landscape, contributing to 85% of global semiconductor prototypes. TSMC reported a 21% year-over-year sales growth, boasting a 54% operating margin in Q4 2025, indicating a strong demand fueled by increased investment in AI technologies.
