Bdon Trades

@bdon_trades

 

The AI Bull Market Isn’t Over. Here’s Why I’m Still Bullish.

Market Outlook | October 2026

The last several weeks have been absolutely brutal for technology stocks, particularly companies tied to artificial intelligence, semiconductors, and AI infrastructure. We’ve watched some of the market’s biggest winners give back a significant portion of their gains, and naturally, investors are beginning to question whether the AI boom is coming to an end. Personally, I don’t believe that’s the case. I think we’re experiencing a much-needed correction in a sector that became overheated, rather than a breakdown in the long-term AI growth story. There’s a big difference between a company’s stock price declining and its underlying business deteriorating. The fundamentals are still there, the demand is still there, and most importantly, these companies are generating real revenue. NVIDIA recently reported quarterly revenue of $96.2 billion, representing 106% year-over-year growth, with its data center business alone generating $89 billion. Microsoft just reported 48% growth in Azure revenue, demonstrating that demand for cloud computing and AI infrastructure remains incredibly strong. These aren’t speculative projections anymore. We’re watching one of the largest technology infrastructure buildouts in history unfold in real time.

What makes me even more bullish is the amount of capital and long-term commitments flowing into this industry. Companies like Nebius have secured multibillion-dollar infrastructure agreements with Microsoft, including a contract valued at approximately $17.4 billion, while NVIDIA announced a $2 billion strategic investment in Nebius earlier this year. These are substantial financial commitments from some of the biggest players in technology. Meanwhile, the memory cycle that I’ve been bullish on continues to show incredible strength. Micron reported record fiscal fourth-quarter revenue of $54.23 billion, compared with $11.32 billion a year earlier, supported by surging memory demand. AI data centers require enormous amounts of high-bandwidth memory, DRAM, storage, computing power, and electricity, creating opportunities across the entire infrastructure ecosystem. This is why I believe the AI cycle is much bigger than just NVIDIA or a handful of technology stocks. We’re talking about an industry-wide transformation that could continue creating opportunities for years to come.

Now, does that mean we’ve found the bottom? Absolutely not. I’ve said this before, and I’ll say it again: just because you believe in a company long term doesn’t mean its stock can’t fall another 20% or 30% in the short term. Investors are rightfully questioning elevated valuations, aggressive infrastructure spending, and how quickly these investments will translate into profits. Those concerns can create additional volatility, and I believe patience, cash management, and positioning are extremely important in this environment. But my overall outlook hasn’t changed. I’m still bullish on artificial intelligence, semiconductors, memory, and the infrastructure companies powering this entire revolution. When market sentiment eventually improves, I believe companies demonstrating real earnings growth, strong demand, and sustainable business models will be among those best positioned to lead the next leg higher. Corrections are uncomfortable, but they also create opportunities for investors who can look beyond the next few weeks and focus on where the industry is heading over the next several years.

Not financial advice. Always do your own research.