AI cycle shifts from hardware to monetisation, says Appreciate CEO
Subho Moulik of Appreciate has identified five US equities that stand to benefit as the artificial intelligence investment cycle pivots from building computing infrastructure to generating durable cash flows.
Subho Moulik, founder and CEO of Appreciate, has highlighted five US stocks for investors to consider over the next one to two weeks, arguing that the current earnings season marks a structural turning point in the artificial intelligence trade.
The S&P 500 has climbed roughly 9% this year to close at 7,457.69, while the Nasdaq Composite has reached 25,520.24, up about 10%. Moulik noted that while June inflation came in below expectations for a second straight month, the real driver for markets is corporate profitability.
"The first phase rewarded companies building computing infrastructure. The next phase is rewarding businesses that can monetise that infrastructure through software, financial products and consumer platforms," Moulik said. "Investors are no longer paying for AI potential alone—they are increasingly rewarding companies that are already converting AI investment into durable cash flows."
Infrastructure bottlenecks
Semiconductor manufacturing remains a critical constraint in the global AI economy. Taiwan Semiconductor reported second-quarter revenue of NT$1.27 trillion ($40.2 billion), a 33.7% year-on-year increase, with net profit hitting roughly NT$706.6 billion. "As long as AI infrastructure spending continues accelerating, TSMC remains one of the clearest beneficiaries of that global capital investment cycle," Moulik said.
Nvidia's dominance extends beyond its processors to encompass the hardware, networking and software ecosystems forming the foundation of enterprise AI. "As long as global technology companies continue expanding AI infrastructure, Nvidia remains one of the most important companies determining the pace of that investment cycle," Moulik noted.
Monetisation and economic signals
Financial institutions are providing crucial macroeconomic data alongside their earnings. JPMorgan posted approximately $21.2 billion in second-quarter net income on $57.3 billion of revenue, beating expectations as investment banking strengthened and consumer credit quality stayed stable. "This quarter's results point firmly toward resilience rather than weakness," Moulik said.
Streaming platforms are simultaneously finding new revenue models. Netflix generated a record $12.6 billion in quarterly revenue, up 13% year-on-year, by rapidly scaling its advertising segment. "That evolution shifts Netflix from being viewed purely as a streaming platform to becoming a diversified digital media business with multiple avenues for earnings expansion," Moulik said.
Passive investing continues to capture market share regardless of individual stock performance. BlackRock crossed $15 trillion in assets under management, buoyed by a record $1 trillion in net inflows into the broader ETF industry during the first half of 2026. "Rather than attempting to time every market move, capital continues flowing into diversified equity exposure," Moulik said.
