If you’ve been watching the market lately, you’ve probably heard a lot about uncertainty.

Investors continue to watch inflation, interest rates, earnings reports, and with a midterm election approaching, many are wondering whether markets could experience more volatility during the months ahead.

Those are important conversations, and they can certainly influence markets over shorter periods of time.

But underneath those headlines, another story continues to unfold—one that many analysts believe could have implications well beyond this year.

Artificial intelligence.

Artificial Intelligence as a Key Driver of Market Performance

Over the last two years, many analysts point to AI as one of the biggest drivers of market performance.

Much of that excitement has centered around companies building the technology.

AI Infrastructure Investment: Data Centers, Chips, and Cloud Computing

Think about what’s required to make artificial intelligence work at scale: massive data centers, advanced semiconductor chips, cloud computing, networking equipment, power generation, cooling systems.

The list goes on. Building AI isn’t cheap.

Big Tech AI Capital Expenditures

In fact, some of the world’s largest technology companies are investing hundreds of billions of dollars into expanding this infrastructure. Companies like Microsoft, Amazon, Alphabet, and Meta continue increasing capital expenditures because they believe AI will become an increasingly important part of how businesses operate in the years ahead.

That’s why many analysts no longer describe AI as simply another technology trend.

They’re beginning to describe it as the next generation of digital infrastructure.

But here’s where the story gets even more interesting.

From Building AI to Monetizing AI: Wall Street’s Shifting Focus

Many analysts say the conversation on Wall Street is beginning to change.

For the last several years, investors largely rewarded companies for building AI.

Today, they’re increasingly asking a different question.

Who can actually make money from it?

That’s an important shift.

AI Monetization in Action: Microsoft Copilot, AWS, Adobe, Salesforce, and ServiceNow

Microsoft has integrated Copilot into Microsoft 365, bringing AI into applications millions of people already use every day.

Amazon continues expanding AI services through AWS, allowing businesses to build, train, and deploy their own AI applications.

Adobe has embedded generative AI directly into Photoshop, Illustrator, and Premiere Pro, enhancing products customers already subscribe to.

Notice what’s happening. These companies aren’t replacing their existing businesses. They’re making those businesses more valuable by incorporating AI into products and services customers already rely on.

And that’s becoming one of the biggest questions for investors. Not simply who can build AI, but who can monetize it?

AI Adoption Across Healthcare, Financial Services, Manufacturing, and Logistics

Beyond technology, AI adoption is beginning to spread across healthcare, financial services, manufacturing, logistics, cybersecurity, and many other industries. Companies are exploring ways to improve productivity, automate repetitive tasks, reduce costs, and enhance customer experiences.

That’s why many analysts believe the next phase of AI may be less about building bigger models and more about helping businesses create measurable value.

Market Volatility vs. Long-Term AI Investment Themes

Of course, none of this means markets won’t experience periods of volatility.

Markets have historically responded to economic data, corporate earnings, interest rates, geopolitical events, and elections. Those headlines will continue to shape investor sentiment from one week to the next.

But long-term investment themes often develop over many years—not a single quarter.

And based on where companies are allocating capital today, artificial intelligence appears to be one of those themes.

Whether every investment succeeds remains to be seen.

Whether every company generates the returns investors hope for is something only time will answer.

The Next Phase of the AI Story: From Building Technology to Creating Economic Value

But one thing seems increasingly clear.

The first phase of the AI story was about building the technology.

The next phase may be about proving it can transform businesses, improve productivity, and create lasting economic value.

And that’s a story investors will likely be watching for years to come.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services.

Securities are offered through LPL Financial, Member FINRA/SIPC. GenWealth Financial Advisors is an other business name of Independent Advisor Alliance, LLC. All investment advice is offered through Independent Advisor Alliance, LLC, a registered investment adviser. Independent Advisor Alliance, LLC is a separate entity from LPL Financial.