The AI Value Chain: Investor Perspectives on Data Centers, Semiconductors and More

In our modern world, computers and cell phones have become everyday necessities that are expected to simply work. Yet, there is unbelievable complexity behind not only the engineering that makes them possible, but also in the supply chains that allow millions of devices to be manufactured.

Similarly, artificial intelligence (AI) may seem simple when using a chatbot, but there is a complex value chain that allows anyone with a device to access capabilities that would have seemed like science fiction less than a decade ago. This has made generative AI and large language models (LLMs) one of the most important themes driving financial markets and the economy. This also means it’s important to have a broader view of AI that goes beyond a few technology stocks.

While there is little doubt that AI is transformational, it remains difficult to forecast demand or determine how it will affect businesses, workers, and productivity in the years ahead. For investors, this uncertainty can make it difficult to value companies, sectors, and the overall stock market. How can investors better understand AI’s impact while maintaining a long-term perspective?

 

The entire AI supply chain is supporting markets

One of the most important insights for investors is that “AI” is not a single type of investment. While it’s natural to think of the model providers at the heart of these capabilities, such as OpenAI, Anthropic, Google, and more, they only represent one piece of the puzzle. There is a full supply chain that covers a range of activities, industries, and business models, each with its own characteristics and risks, including hardware, data centers, software providers, and more.

At the foundation is the semiconductor hardware that makes this all possible. There are two stages where hardware like GPUs and memory chips are needed. The first is model training to build LLMs, a process that uses huge amounts of data across thousands of connected servers, taking weeks or months to complete.

The second is known as “inference,” which is the actual use of these models by individuals and businesses. Each prompt requires computational and memory resources to generate an answer. The combination of training and inference is why demand and prices for this hardware have surged, leading to high market valuations.

Over time, this hardware needs to be scaled up to meet demand, which is where data centers come in. Imagine a data center as a large warehouse packed from floor to ceiling with servers. These machines run 24/7, requiring security, electricity, and cooling. Altogether, these represent the enormous resources devoted to making AI applications possible.

Spending on data centers has become a significant contributor to economic activity. The chart above shows the amount spent on data center construction, not including the IT hardware. It’s clear that this spending has accelerated since the launch of ChatGPT in late 2022, and has surpassed all other types of office construction. It’s also important to note that not all of this growth is strictly due to AI. General adoption of technology and automation, especially since 2020, have also led to greater demand for computational resources.1

Finally, there is the use of AI by businesses, both internally as well as new AI applications by software providers. At the moment, this is perhaps the hardest to evaluate, since it depends on how effectively companies can turn AI capabilities into productivity gains and product enhancements. For instance, how AI interacts with existing software, and whether these companies will evolve, has been one source of market uncertainty over the past year.

 

Investors are weighing whether large investments will pay off2

A central question facing investors right now is whether the hundreds of billions being spent on AI infrastructure will eventually generate sufficient returns. This is challenging due to the scale of these investments, particularly from the largest technology companies. On the one hand, the demand for computing power to train and run AI models has been substantial, supporting the companies that provide hardware and data center capacity. On the other hand, as models continue to improve, they may also become more efficient, potentially requiring less computing power for a given task over time.

This uncertainty helps explain some of the volatility in AI-related stocks. As the accompanying chart shows, mega-cap technology stocks have experienced strong returns over the past several years, but with large swings. Since it takes time to build new data centers, periods of optimism about infrastructure spending have been followed by periods of concern about whether there will be sufficient demand.

Since early 2025, for example, investors have been worried about more efficient AI models that might mean less computing power is required. However, history shows that the efficiency gains that come with new innovations do not always reduce overall demand, a phenomenon that is commonly referred to as the “Jevons paradox.” In some cases, cheaper and more capable technology leads to broader adoption and completely new use cases. For instance, electricity today is not just for light bulbs, and computers are not just for large companies.

At the same time, markets have a long track record of overestimating the speed at which new technologies generate profits, even when the long-term potential is real. The enthusiasm investors showed for internet stocks in the late 1990s and early 2000s took decades to truly play out. This is why it’s important to maintain not just a broader perspective on the companies involved in AI, but also a long-term perspective as the technology and demand evolve.

 

Valuations reflect high expectations

As AI has captured investor attention, valuations for many technology companies have risen steadily. As the chart above shows, Information Technology sector valuations, at 21.4x, are high relative to their own history and the broader market. The same is true for sectors such as Communication Services and Consumer Discretionary which also contain large tech companies. At the same time, these valuations also reflect strong earnings growth as demand for AI capabilities grows.3

It’s important to remember that valuations are not a tool for predicting what markets will do tomorrow. Instead, valuations can help us decide the appropriate mix of assets in a portfolio, especially when aligning it to financial goals. So, while AI trends provide potential opportunities for growth, many other sectors are attractively valued and have expected strong earnings growth as well. As always, the key is to maintain perspective, balancing the AI theme and other parts of the market to work toward your financial goals.

 

The trends driving AI go beyond a few technology companies. While these themes are driving markets, it’s important to maintain a broader perspective and longer time horizon with a focus on long-term financial goals.

 

 

References

  1. https://www.census.gov/construction/c30/c30index.html
  2. The Magnificent 7 companies include Meta, Amazon, Apple, Alphabet, Nvidia, Microsoft, and Tesla. Data as of July 17, 2026
  3. Clearnomics research and LSEG data as of July 17, 2026

 

Index Descriptions

S&P 500

The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

NASDAQ

The NASDAQ Composite Index measures all NASDAQ domestic and non-U.S. based common stocks listed on The NASDAQ Stock Market. The market value, the last sale price multiplied by total shares outstanding, is calculated throughout the trading day, and is related to the total value of the Index.

 

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested in directly.

 

All investing involves risk, including loss of principal. No strategy assures success or protects against loss. The economic forecasts set forth in this material may not develop as predicted, and there can be no guarantee that strategies promoted will be successful.

 

Copyright (c) 2026 Clearnomics, Inc. All rights reserved. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness, or correctness of the information and opinions contained herein. The views and the other information provided are subject to change without notice. All reports posted on or via www.clearnomics.com or any affiliated websites, applications, or services are issued without regard to the specific investment objectives, financial situation, or particular needs of any specific recipient and are not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Past performance is not necessarily a guide to future results. Company fundamentals and earnings may be mentioned occasionally, but should not be construed as a recommendation to buy, sell, or hold the company’s stock. Predictions, forecasts, and estimates for any and all markets should not be construed as recommendations to buy, sell, or hold any security–including mutual funds, futures contracts, and exchange traded funds, or any similar instruments. The text, images, and other materials contained or displayed in this report are proprietary to Clearnomics, Inc. and constitute valuable intellectual property. All unauthorized reproduction or other use of material from Clearnomics, Inc. shall be deemed willful infringement(s) of this copyright and other proprietary and intellectual property rights, including but not limited to, rights of privacy. Clearnomics, Inc. expressly reserves all rights in connection with its intellectual property, including without limitation the right to block the transfer of its products and services and/or to track usage thereof, through electronic tracking technology, and all other lawful means, now known or hereafter devised. Clearnomics, Inc. reserves the right, without further notice, to pursue to the fullest extent allowed by the law any and all criminal and civil remedies for the violation of its rights.

Share This:

Facebook
Twitter
LinkedIn

Connect

Connecting with Vertex Planning Partners is your first step towards a tailored financial future. Reach out to discuss guidance that aligns with your unique financial goals and aspirations.

Connect With Us

Schedule a meeting with a  Vertex Planning Partner Advisor who will answer any questions you might have. 

p: 630.836.3300 – e: in**@************rs.com

We’re here to help. Email or call us and speak with a Vertex Planning Partner Advisor who will answer any questions you might have: 630.836.3300 or in**@************rs.com

Download our Independent Advisors eBook

Enter your email to download our Independent Advisors eBook and unlock the secrets to a tailored financial future.

Download our PATH eBook

Enter your email to download our PATH eBook and unlock the secrets to a tailored financial future.

Peter M. Babilla, CFP®, CRPS®

PARTNER

Peter Babilla brings 40 years of experience in investment management and fiduciary* financial consulting to Vertex Planning Partners, LLC.

Pete graduated from Indiana University in Bloomington, Indiana with a Bachelor’s of Science in Finance.

He began his career in 1983 with a focus on institutional fixed-income portfolio management, primarily working with community banks. After a decade serving institutional clients, Pete shifted his focus to working with individuals, families and business owners, providing guidance and education in all areas of Wealth Management.  Among his areas of focus are accumulation and retirement planning, investment management, risk management, and estate and wealth transfer.

Pete’s planning philosophy allows him to create a personalized program for clients, based on their own unique goals and circumstances.  The extensive investment and planning platform offered by Vertex enables him to create a highly customized program, tailored to each individual client.

Pete and his wife Suzanne have two children, and have resided in Wheaton, Illinois for the past 30 years.  He enjoys golf, reading, and traveling with his family.  Pete gives back as a past Board Member of the Epilepsy Foundation of Greater Chicago, where his focus is on improving the lives of those living with epilepsy.

Pete works as fiduciary for his clients and holds the CERTIFIED FIANANCIAL PLANNER™ (CFP®) designation and the Chartered Retirement Plan Specialist (CRPS®) designation.

Justin J. D'Agostino, CPWA®, CFP® , TPCP®, ChFC®, CRPC®

PARTNER

Justin D’Agostino is a Partner and Private Wealth Advisor at Vertex Planning Partners, advising business owners, executives, and high-net-worth families on investments, financial planning, tax and succession planning.

He coordinates the full advisory team around each client to keep tax, investment, and planning decisions moving in the same direction. Justin’s approach centers on rigorous, data-driven analysis — modeling outcomes across planning scenarios so clients can make decisions with clarity.

With over a decade of experience, Justin’s work focuses on:

  • Investment & Portfolio Strategy
  • Tax-Efficient Planning
  • Equity Compensation & Concentrated Stock
  • Retirement & Distribution Planning
  • Estate & Succession Planning

Justin attended Hillsdale College, where he earned his BA in Accounting and Financial Management. He is an avid sports fan and enjoys spending weekends with his family.

Designations:

  • Certified Private Wealth Advisor®
  • CERTIFIED FINANCIAL PLANNER™ Professional
  • Tax Planning Certified Professional®
  • Chartered Financial Consultant®
  • Chartered Retirement Planning Counselor™

 

Justin does not provide tax or legal advice. He works alongside each client’s CPA and attorney on those matters.

CRPC conferred by College for Financial Planning.

Scott A. Sandee CFP®, CIMA®, CPWA®, CEPA

MANAGING PARTNER

Scott Sandee brings over 20 years of experience to his role as Managing Partner of Vertex Planning Partners, leading the firm’s efforts to assist middle-market business owners and eight and nine-figure families in comprehensive planning. We enable clients to achieve their financial goals by tailoring solutions to their unique aspirations and situations. Leveraging his experience in sophisticated investment techniques and financial strategies with privately held family businesses, supported by extensive post-graduate education focused on exit planning, wealth management, estate planning, investment analysis, insurance planning, risk management, and tax optimization, he:

  • Assist owners in preparing for and executing a successful transition.
  • Develop financial strategies to maximize sales proceeds and reduce future taxes.
  • Listen carefully and create personalized solutions that reflect each client’s unique hopes, goals, and concerns.
  • Explain complex and technical concepts with clarity and simplicity.

 

Scott guides successful entrepreneurs and wealthy families through the transfer of ownership of their privately held companies.

Designations: Certified Financial Planner® Certified Private Wealth Advisor® Certified Investment Management Analyst® Certified Exit Planning Advisor Certified Merger & Acquisition Advisor

Julie Hupp CFP®, MBA

PARTNER

Julie Hupp, CERTIFIED FINANCIAL PLANNER™ professional, has worked in the accounting and corporate finance field since 1987. She began her career as a CPA with Deloitte & Touche, specializing in the financial needs of small businesses. Then spent the next 13 years in corporate financial planning and business development at Baxter and TAP Pharmaceuticals. Recognizing her passion for personal financial planning, Julie started her business in 2006 where she focuses on comprehensive financial planning strategies and implementation.

Julie graduated from University of Illinois with a BS in Accountancy. She received her Master’s in Management with a concentration in Finance from Northwestern University’s Kellogg School of Management in 1994.

Outside the office, Julie is the co-founder of the 12 Oaks Foundation, which has merged with Cal’s Angels, and is a former Board member. Julie enjoys cooking, reading, running, triathlons and doing almost anything outdoors. A great weekend is spending time with her husband and two adult kids boating at their lake house in Wisconsin.

Steven P. Franzen, CPA, PFS, CGMA

MANAGING PARTNER

Steven P. Franzen, CPA, PFS, CGMA is a public accountant and consultant with more than 23 years of experience helping individuals and businesses reduce their tax liability.  He began his career under the guidance of Patrick M. De Sio, CPA, CGMA and in 1996 became Mr. De Sio’s partner in De Sio, Franzen & Associates, Ltd. Steve’s expertise include entity design, complex tax strategies and multigenerational wealth transfer.  As Managing Partner, Steve conducts his practice under the philosophy that the client’s investment in their CPA should yield a return on that investment – most of the time that return is realized when working with clients on planning for their future. In an effort to increase the planning capabilities of the firm,  Steve formed Vertex Accounting Partners, LLC to ensure their guiding philosophy will continue well into the future.

Steve is a certified public accountant and has earned the professional designations of Personal Financial Specialist and Chartered Global Management Accountant.  He is a member of the American Institute of Certified Public Accountants and the Illinois CPA Society.  Steve earned a B.S. degree in accounting from Millikin University.  He and his wife Kristie live in Sugar Grove, IL with their three children.

Gregory P. Benner, MST, CPWA®, CFP®, CLU®, ChFC®, AIF®, RMA®

MANAGING PARTNER

Greg Benner advises high-net-worth and ultra-high-net-worth business owners, individuals and families on advanced tax, risk management, retirement, estate planning, and wealth strategies.  

As a co-founder of Vertex Planning Partners, he works closely with clients, families, and their professional advisors—CPAs, attorneys, and business stakeholders—to implement thoughtful, durable planning strategies. His approach prioritizes clarity, coordination, and disciplined execution.

For twenty-four years, Greg’s work has focused on designing and coordinating multi-factor, integrated plans involving:

  • Tax Efficiency
  • Wealth Transfer Structures
  • Retirement Planning
  • Investment Strategy, and
  • Long-Term Financial Architecture

 

Drawing from his own experience as a founder, business and real estate investor, and multi-generational family business member, he understands some of the challenges that can arise for business owners as they consider an exit. Multi-disciplinary, intentional planning with stakeholder communication creates structure, mitigates risk, addresses tax implications, and preempts issues that can arise.

Greg holds a Master of Science in Taxation, a graduate program that deepened his technical training in federal income taxation, partnership and corporate taxation, estate and gift tax, and tax procedure. This academic work enhances his ability to help families and business owners navigate complex tax environments and align their financial and estate-planning objectives across generations.

Designations:

  • Certified Private Wealth Advisor®
  • Certified Financial Planner®
  • Chartered Financial Consultant®
  • Chartered Life Underwriter®
  • Accredited Investment Fiduciary®
  • Retirement Management Advisor®

 

Licenses:

  • Series 65 registration held with Vertex Planning Partners, LLC
    Illinois, Ohio, Wisconsin & Louisiana Life & Health Insurance License

 

Greg is deeply committed to lifelong learning and continuous professional development in the areas of tax, estate planning, and private-wealth strategy.

Michael D. Bellis, CFP®, CLU®

MANAGING PARTNER

Michael D. Bellis, CFP®, CLU® began his career as a financial planning professional in 1994. His practice is centered on holistic financial planning, astute risk management strategies and empirical, research-driven portfolio construction. He began his career in partnership with his father under the name Bellis & Associates. Together, their practice and reputation for excellence dates back more than 40 years and includes multiple generations of the same families. After his father’s retirement several years ago, Mike continued to build a client-centric, consultative practice before forming Vertex.

Mike holds the CERTIFIED FINANCIAL PLANNER™ certification and is also a Chartered Life Underwriter. He has been an active member of both the Society of Financial Services Professionals and the National Association of Insurance and Financial Advisors. He earned a B.S. in Business & Marketing from Illinois State University. Mike is a lifelong resident of Naperville, Illinois. He and his wife Tanja have three children.