Market Insights

The modern AI economy effectively began in 2022, when researchers learned how to combine large-scale computing with human feedback models. This breakthrough transformed raw language models into useful, interactive systems and unlocked the technologies behind today's AI platforms. It also triggered an unexpected side effect: a nationwide wave of data-center development.

In 1965, Gordon Moore predicted that the number of transistors on a microchip would double approximately every two years. To date, his prediction has proven reliable, allowing technology firms to innovate in unimaginable ways. Likewise, investing possesses its own doubling rule, called the rule of 72. The rule estimates the number of years it takes for an investment to double by dividing 72 by the investment’s expected return.

Advances in computing, semiconductors, medicine, and energy have been key drivers of the current business cycle. Many of the world’s largest corporations are investing heavily in new technologies to unlock future profitability. These capital investments have not only fueled innovation but also supported the broader stock market and corporate earnings. It is working circularly throughout markets, where one company’s capital expense is another’s revenue.