The AI Investing Pulse

January 22, 2026

In this Week’s Edition:

1. Analysis - The AI Memory Squeeze

2. Stock Ideas - Top AI stocks set to boost returns

3. News - Is the AI rally shifting rather than ending?

4. Startups - Baseten raises $300m with Nvidia backing

5. Trends - Companies expect to double AI spending by 2026

6. Other News - Most CEOs see no return from AI spending yet

The AI Memory Squeeze - The Bottleneck Creating the Next Wave of Winners

This week’s market action was not driven by new AI products or software launches. It was driven by where capital is quietly repositioning inside the AI stack.

While the Application and Edge layer declined by 2.77%, Hardware and Infrastructure rose 1.54%, signalling a rotation away from narrative-driven trades and towards the physical constraints that determine whether AI can scale at all.

The focus of that rotation is not compute in general. It is memory speed.

AI progress is no longer limited by how powerful chips are. It is limited by how fast data can reach them.

High-Bandwidth Memory, which sits directly next to AI processors, is effectively sold out through 2026. Even the most advanced accelerators cannot operate at full capacity unless memory is available alongside them.

This is not a short-term supply issue. It is a multi-year structural constraint, and it is reshaping capital flows across the entire AI ecosystem.

The AI Brain Framework

To understand why memory matters so much, it helps to simplify how AI systems actually work. Think of AI as a brain.

• The processor (GPUs) is the part that does the thinking.

• Memory is what the brain uses to recall information instantly.

• Connections move information between different parts of the brain.

• The Assembler fuses memory and GPUs together.

If memory is slow or unavailable, the brain does not become slightly less efficient. It stops functioning properly. That is the bottleneck now emerging across AI infrastructure.

This week, we are not analysing AI through the lens of products or applications. We are looking at it through the lens of control points.

These are the layers of the AI brain that determine whether systems can be built, deployed, and scaled. The companies below sit across these control points.

Tier 1: The Memory

Micron Technology $MU ( ▲ 2.18% )  

Sector / Industry: Technology / Semiconductors
AI Stack Layer: Memory | Hardware and Infrastructure
Performance (1-Week): ▲ 15.60%

What It Does

Micron produces advanced DRAM and High-Bandwidth Memory used in AI accelerators and data centres. Its products directly determine how fast AI systems can operate in real time.

Why It Stands Out This Week

Micron controls the most constrained input in the AI stack. With HBM sold out through 2026, it has regained pricing power, secured prepayments, and effectively controls how much AI compute can be deployed.

Tier 2: The Equipment Levered (The Builders)

Lam Research $LRCX ( ▼ 3.37% )  

Sector / Industry: Technology / Semiconductor Equipment
AI Stack Layer: Manufacturing Tools | Hardware and Infrastructure
Performance (1-Week): ▲ 5.00%

What It Does

Lam Research supplies the etch and deposition tools required to manufacture complex, multi-layered HBM stacks.

Why It Stands Out This Week

HBM shortages are driven by manufacturing complexity, not just demand. Every increase in memory output requires Lam’s tools, making it a direct beneficiary of memory capacity expansion without commodity pricing risk.

ASML Holding $ASML ( ▲ 2.57% )  

Sector / Industry: Technology / Semiconductor Equipment
AI Stack Layer: Lithography | Hardware and Infrastructure
Performance (1-Week): ▲ 2.10%

What It Does

ASML provides Extreme Ultraviolet lithography systems used to manufacture advanced AI-grade memory.

Why It Stands Out This Week

As HBM moves to denser and more advanced nodes, EUV becomes unavoidable. ASML sits directly on the memory roadmap, making it a structural beneficiary of the AI memory arms race.

Tier 3: Scale Gets Supply (The Moat)

Advanced Micro Devices $AMD ( ▲ 1.57% )  

Sector / Industry: Technology / Semiconductors
AI Stack Layer: Compute and Memory Integration | Hardware and Infrastructure
Performance (1-Week): ▲ 9.60%

What It Does

AMD designs AI accelerators for hyperscale deployment, relying on secured memory supply to ship at volume.

Why It Stands Out This Week

In a memory-constrained environment, accelerator success depends on access to HBM. AMD’s relative strength reflects confidence that it has secured the supply needed to compete at scale.

Taiwan Semiconductor $TSM ( ▲ 0.38% )  

Sector / Industry: Technology / Semiconductor Foundry
AI Stack Layer: Advanced Packaging | Hardware and Infrastructure
Performance (1-Week): ▼ 4.50%

What It Does

TSM manufactures and packages GPUs and memory together using advanced CoWoS technology.

Why It Stands Out This Week

Memory and compute only become usable once they are physically integrated. TSM controls the final gate that turns chips into deployable AI systems.

Astera Labs $ALAB ( ▲ 0.2% )  

Sector / Industry: Technology / Semiconductors
AI Stack Layer: Connectivity | Hardware and Infrastructure
Performance (1-Week): ▲ 0.90%

What It Does

Astera Labs builds high-speed connectivity solutions that move data between memory, accelerators, and racks in large AI systems.

Why It Stands Out This Week

As memory speeds increase, data movement becomes the next bottleneck. Astera sits at this emerging constraint, enabling AI systems to fully utilise faster memory.

Final Take

The AI trade is no longer about who has the smartest chip. It is about who can keep the AI brain fed.

This week’s market action shows that investors are beginning to internalise a simple reality. Memory, not compute, is now the gating factor for AI deployment. That shift transfers power to memory producers, the equipment companies that enable capacity expansion, and the integrators that control access and assembly.

Looking ahead, market leadership may increasingly favor companies with locked supply, operational scale, and strong positioning across the AI stack, rather than those defined solely by ideas or architectures.

_{Disclaimer - This content is provided for informational purposes only and does not constitute investment advice, personal recommendations, or an invitation to engage in any investment activity. The information presented is derived from publicly available sources and should not be solely relied upon for making investment decisions. Always consult with a qualified financial professional before making investment choices. Past performance is not a guide to future performance.}

^{About AIIP - The AIIP Index tracks 173 AI-focused public companies across the full AI stack, serving as our benchmark for sector performance. All scores are proprietary and calculated using data from Finbox (powered by S&P Global Intelligence). AIIP Total Score (0–100) combines metrics for sales and EPS growth, financial quality, and valuation to assess overall business strength. AIIP Relative Strength (RS) Score measures a stock’s price performance relative to the AIIP 173 AI stocks. Ranking Status is based on score combinations: Fundamental: Total Score ≥ 70, RS < 80. Momentum: RS ≥ 80, Total Score < 70. Watchlist: Total Score ≥ 70 and RS ≥ 80}

TOP AI STOCKS PERFORMANCE

TOP AI ETFs PERFORMANCE

AI STOCKS IDEAS

Top AI stocks set to boost returns – Yahoo Finance
Leading AI companies are positioned to drive strong investor returns through 2026. Rapid advances in AI infrastructure, cloud computing and platform innovation continue to support long-term growth as global AI investment accelerates.

Beyond the hype: AI ETFs for long-term growth – The Globe and Mail
AI is entering a more durable growth phase, prompting investors to turn to ETFs for diversified exposure.

Three AI stocks with major upside by 2026 – The Globe and Mail
Select Wall Street analysts forecast gains of up to 109% for Taiwan Semiconductor, Nvidia and Broadcom by 2026.

AI STOCKS & ETFs NEWS

Is the AI rally shifting rather than ending? – Investing News
Early 2026 has seen leadership broaden beyond mega-cap tech, with small caps and defensive sectors gaining traction. The AI rally may be evolving rather than fading.

Why Meta could look cheap by 2026 – The Motley Fool
Meta is highlighted as a Magnificent Seven stock that may be undervalued today. Improving earnings visibility and AI-driven monetisation could mean the market is underestimating its long-term potential.

OpenAI turmoil raises investor concerns – The Week
A veteran investor has flagged internal disruption at OpenAI, suggesting organisational instability despite its reported $500 billion valuation and raising questions around governance at leading AI labs.

Is it too late to buy AI stocks? – Yahoo Finance UK
This analysis urges caution, pointing to elevated valuations and market volatility. While AI’s long-term outlook remains strong, selectivity and timing are becoming increasingly important.

AI STARTUPS

Baseten raises $300m with Nvidia backing – PYMNTS
AI inference startup Baseten has secured $300 million in funding, lifting its valuation to $5 billion. Nvidia’s involvement strengthens its position as demand grows for scalable AI deployment infrastructure.

Inside 36Kr and China’s new economy – 36Kr
Founded in 2010, 36Kr supports companies across their lifecycle, from fundraising to PR. The platform continues to expand as it embeds itself in China’s evolving technology ecosystem.

Cloover secures $1.2bn to power Europe’s energy AI – Analytics India Magazine
Energy tech startup Cloover has raised over $1.2 billion to build AI-driven operating systems for European energy installers, simplifying financing and management for solar and battery infrastructure.

AI TRENDS

Companies expect to double AI spending by 2026 – CFO.com
Businesses anticipate a sharp rise in AI investment, with global spending projected to exceed $2 trillion. CFO confidence is growing as AI delivers measurable productivity gains.

Only 7% of AI investors plan to sell in 2026 – The Motley Fool
Survey data shows strong conviction in AI markets, with around 90% of investors planning to hold or increase exposure, signalling continued confidence in long-term growth.

The biggest AI trends shaping 2026 – Yahoo Finance
The AI market is shifting from rapid expansion to execution and competition, with hybrid deployment across cloud platforms such as Google and Amazon expected to define the next phase.

OTHERS

Most CEOs see no return from AI spending yet – The Register
More than half of surveyed CEOs report no financial payoff from AI investments so far, underlining the risks of fragmented AI strategies without clear execution plans.

Best AI lead generation tools reviewed – Cybernews
A review of leading AI-powered lead generation tools, highlighting how automation and personalisation are reshaping modern sales workflows.

VIDEOS

AI tools that summarise YouTube videos – DRM News

_{Disclaimer - The information contained on this newsletter does not constitute investment advice or a personal recommendation, nor is it an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investments, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all. The information presented is based on publicly available data and sources believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Market conditions can change rapidly, and the information provided may no longer be up to date. This content is for informational purposes only and should not be construed as financial, legal, or tax advice. Data sources: S&P Global Market Intelligence}