From SpaceX to Nvidia: Deals Showing AI Runs on Capital
Investors are rewarding AI hardware makers, sending semiconductor stocks soaring roughly 65% since early 2025, while the capital-intensive nature of AI reshapes investment patterns.
The artificial intelligence revolution is proving to be one of the most capital-intensive technology shifts in history. From SpaceX's satellite-based AI infrastructure to Nvidia's dominance in GPU computing, the deals and investments flowing into AI hardware underscore a fundamental truth: AI runs on capital.
Semiconductor stocks have soared approximately 65% since early 2025, reflecting investor confidence in the hardware layer of the AI stack. Companies that manufacture, design, or supply components for AI systems have seen their valuations reach unprecedented levels.
This capital-intensive nature of AI development has important implications for supply chain management, as companies must secure long-term access to critical components and manufacturing capacity to remain competitive.