Memos

AI Hurtles Ahead: Navigating the 2026 Tech Bubble

By Arthur Lawson Date: February 26, 2026

The transition we are witnessing in artificial intelligence is fundamentally altering the velocity of capital across global markets.

Unlike the speculative crypto boom, generative AI models represent a tangible shift in enterprise software utility. However, market pricing mechanism for semiconductor manufacturers has become entirely decoupled from their historical cyclicality.

The Energy Grid Bottleneck

Our primary concern is not software limitations, but rather the massive infrastructural bottlenecks associated with data center energy consumption. The power demands required to train next-generation LLMs are completely misaligned with the current regulatory hurdles facing utility companies in North America and Western Europe.