The artificial intelligence sector continues to drive significant market activity, with South Korea's Kospi index reaching a new record high of 5,224.3 on January 30, 2026, fueled by strong investor interest in AI-related shares. This surge occurred despite growing concerns about a potential market bubble. Similarly, the S&P 500 saw an 18 percent return in 2025, largely attributed to the AI boom. However, the Nasdaq index experienced a dip on January 29, 2026, as investors worried about high AI spending, particularly from Microsoft, which saw a $430 billion drop in market value.
Meta Platforms announced substantial capital expenditures for this year, projecting between $115 billion and $135 billion, with a significant portion dedicated to artificial intelligence. This represents a tripling of Meta's infrastructure spending in just two years. CoreWeave, a company specializing in GPU-equipped data centers, stands to benefit greatly from this, having already secured a $14 billion deal with Meta for cloud computing capacity through 2031. This aggressive investment by Meta suggests other tech giants like Microsoft, Alphabet (Google), and Amazon may also increase their AI spending.
OpenAI is reportedly preparing for an initial public offering in the fourth quarter of 2026, an event expected to test investor confidence in the AI market. The company, currently valued at $500 billion, does not anticipate achieving profitability until 2030. OpenAI has also committed to an enormous $1.4 trillion in data center spending by 2033, indicating its long-term vision and investment in AI infrastructure.
In the memory and storage sector, Kioxia is strategically focusing on advanced NAND storage for AI, while many competitors pursue high-bandwidth memory (HBM) chips. This approach helps Kioxia gain market share in solid-state drives for cloud providers. Kioxia and Sandisk extended their joint venture through 2034, with Sandisk paying Kioxia $1.165 billion. Sandisk itself saw its stock jump 14 percent after reporting strong earnings, driven by immense demand for AI memory, with its data center business growing by 64 percent.
AI's influence extends into specialized fields like healthcare and defense. Intuitive Surgical, with its da Vinci system, and Medtronic, offering its Hugo system, are key players in AI-assisted surgery. Meanwhile, Palladyne AI (PDYN) is expanding its defense hardware with software, expecting revenues between $24 million and $27 million for fiscal year 2026. On the other hand, SAP SE's stock dropped to a 52-week low due to concerns that generative AI could disrupt traditional software business models, prompting the company to invest heavily in its cloud platform and AI capabilities.
Key Takeaways
- The Kospi index reached a record high of 5,224.3 on January 30, 2026, driven by strong investor interest in AI-related shares.
- Meta Platforms plans to spend between $115 billion and $135 billion on capital expenditures in 2026, largely for AI, tripling its infrastructure spending in two years.
- CoreWeave has a $14 billion agreement with Meta for cloud computing capacity through 2031, benefiting from Meta's AI investments.
- OpenAI is reportedly planning an initial public offering for Q4 2026, with the company currently valued at $500 billion.
- OpenAI does not expect to achieve profitability until 2030 and has committed $1.4 trillion to data center spending by 2033.
- Nvidia's CFO forecasts $3 trillion to $4 trillion in AI infrastructure spending across the industry.
- Sandisk's stock soared 14 percent due to high demand for AI memory, with its data center business growing 64 percent.
- Kioxia is focusing on advanced NAND storage for AI, extending its joint venture with Sandisk through 2034, with Sandisk paying $1.165 billion.
- Microsoft's market value dropped $430 billion due to investor concerns about its high AI spending, despite beating earnings estimates.
- SAP SE's stock dropped to a 52-week low amid fears that generative AI could disrupt its traditional software business models.
Kospi hits record high on AI stock surge
The Kospi index reached a new record high on January 30, 2026, closing at 5,224.3 after hitting an intraday high of 5,321.68. Investors heavily bought AI-related shares despite worries about a market bubble. Individuals purchased 2.2 trillion won worth of shares, while foreigners and institutions sold. Major companies like SK hynix and SK Telecom saw gains, but Samsung Electronics dipped slightly. The market's rise was limited by U.S. President Donald Trump's threat of higher tariffs on Korea.
Seoul stocks reach new high on AI investments
South Korean KOSPI index closed at a new record high on January 30, 2026, extending its winning streak. The index rose 0.06 percent to 5,224.3, driven by strong investor interest in artificial intelligence shares despite bubble worries. Individuals bought 2.2 trillion won in shares, while foreign and institutional investors sold. SK hynix and SK Telecom saw significant gains, though Samsung Electronics dipped. The market's overall advance was limited by U.S. President Donald Trump's threats of new tariffs.
Meta plans huge AI spending CoreWeave may benefit
Meta Platforms announced plans to spend between $115 billion and $135 billion on capital expenditures this year, with a large portion going to artificial intelligence. This spending shows a major increase in AI investment, tripling Meta's infrastructure spending in two years. CoreWeave, a company that builds data centers with GPUs, is expected to be a big winner from Meta's plans. Last September, CoreWeave and Meta made a $14 billion deal for cloud computing capacity through 2031. This news suggests the AI boom will continue to grow rapidly in 2026.
Meta commits $135 billion to AI CoreWeave poised to gain
Meta Platforms revealed it will spend $115 billion to $135 billion on capital expenditures this year, mostly for artificial intelligence. This massive investment signals a significant acceleration in the AI industry for 2026. CoreWeave, a company that builds data centers with powerful GPUs, stands to benefit greatly from Meta's spending. CoreWeave already has a $14 billion agreement with Meta for cloud computing capacity through 2031. This news is a strong indicator that other tech giants like Microsoft, Alphabet, and Amazon may also increase their AI spending.
Is an AI bubble forming Should you buy S&P 500 ETF
The S&P 500 saw an 18 percent return in 2025, largely due to the artificial intelligence boom. However, concerns about an AI bubble are growing for 2026, with Nvidia's CFO forecasting $3 trillion to $4 trillion in AI infrastructure spending. Despite these fears, experts suggest investors should still consider buying the Vanguard S&P 500 ETF. This ETF has a low expense ratio of 0.03 percent and historically provides positive returns over long periods. Investors should focus on long-term strategies rather than trying to time the market.
Two AI surgery stocks to consider in February
Artificial intelligence is changing healthcare, and two companies, Intuitive Surgical and Medtronic, are key players in AI-assisted surgery. Intuitive Surgical leads the market with its da Vinci surgical system, which saw an 18 percent increase in surgeries in 2025. Medtronic offers a more diverse range of medical devices, including its Hugo surgical system, and provides a dividend yield of 2.80 percent. While AI is not yet performing surgeries alone, these companies are well-positioned for future advancements in the field. Investors interested in aggressive growth might choose Intuitive Surgical, while those seeking diversification and a dividend might prefer Medtronic.
Kioxia focuses on AI storage as rivals pursue HBM
Kioxia is focusing on advanced NAND storage for artificial intelligence, while its competitors are busy with high-bandwidth memory (HBM) chips. This strategy allows Kioxia to gain market share in solid state drives and other storage devices needed by cloud providers for AI. Kioxia and Sandisk extended their joint venture at the Yokkaichi plant through 2034, with Sandisk paying Kioxia $1.165 billion. Kioxia's shares jumped 11 percent on Friday, showing strong investor confidence. The company plans to increase production capacity slightly faster than the 20 percent overall bit growth expected this year.
Palladyne AI grows defense hardware with software
Palladyne AI, or PDYN, is rated a Buy as it becomes a vertically integrated Mid-Tier Prime company. The company secured US-based manufacturing and expects revenue between $24 million and $27 million for fiscal year 2026. Its SwarmOS integration protocol, which takes only three weeks, allows for quick deployment across defense systems. This positions Palladyne AI as a key standard for autonomous initiatives. The company's long-term success relies on expanding its high-margin software business and using manufacturing to deliver this software.
Sandisk stock jumps on strong AI demand earnings
Sandisk's stock soared 14 percent after reporting much better-than-expected earnings, driven by huge demand for AI memory. The company's data center business grew by 64 percent, leading to a supply shortage across the tech industry. Sandisk's third-quarter revenue forecast of $4.4 billion to $4.8 billion far exceeded analyst expectations. The company also expects adjusted earnings between $12 and $14 per share. This strong performance and high gross margin forecasts show the significant impact of AI on memory chip demand.
OpenAI IPO in 2026 to test AI market faith
OpenAI is reportedly planning an initial public offering for the fourth quarter of 2026, which will test how much investors trust the artificial intelligence boom. The company, currently valued at $500 billion, does not expect to make a profit until 2030. OpenAI has committed to $1.4 trillion in data center spending by 2033 and is raising more funds. Going public could help OpenAI keep and attract talented employees, but it also means disclosing more financial details and facing pressure for quarterly results. CEO Sam Altman has expressed reservations about leading a public company.
Nasdaq drops as Microsoft AI spending worries grow
The Nasdaq index fell on January 29, 2026, as investors worried about high artificial intelligence spending, especially from Microsoft. Microsoft saw a massive $430 billion drop in market value despite beating earnings estimates, due to concerns about its AI investments. In contrast, Meta Platforms stock rose significantly as it is already seeing benefits from its AI spending in advertising. Apple also reported strong fiscal Q3 results, with iPhone sales up 23 percent and a 38 percent surge in China. SanDisk posted impressive earnings, with its data center business growing 64 percent, driven by strong AI demand.
SAP stock hits low due to AI competition fears
SAP SE stock dropped to a new 52-week low on Thursday, following a cautious report from Morgan Stanley about the software-as-a-service sector. Analyst Keith Weiss highlighted generative artificial intelligence as a major threat that could disrupt traditional software business models. He also noted that rising interest rates and inflation add pressure to the sector. SAP SE's business relies heavily on its traditional software, making it vulnerable to new AI-powered solutions. Despite these challenges, SAP is investing heavily in its cloud platform and AI capabilities to adapt and enhance its products.
Sources
- Kospi breaks 5,300 during interday trading as investors chase AI shares
- Seoul stocks renew record high on AI confidence amid U.S. tariff woes
- Meta Platforms Just Said It Will Spend $135 Billion on AI This Year. This Hypergrowth Stock Could Be the Biggest Winner
- Meta Platforms Just Said It Will Spend $135 Billion on AI This Year. This Hypergrowth Stock Could Be the Biggest Winner
- With Fears of an AI Bubble in 2026, Is It Still Smart to Buy This Top S&P 500 ETF?
- 2 AI Surgery Stocks to Buy Hand Over Fist in February
- Kioxia Seeks Growth in AI Storage While Rivals Chase HBM Profits
- Palladyne AI: Software Velocity Unlocks Defense Hardware Scale
- Sandisk stock soars 14% after blowout earnings report showing overwhelming AI demand
- An OpenAI IPO this year would test investor tolerance for the AI boom
- Cold Feet Over AI Spending Brings Nasdaq Down
- SAP SE (SAP) Falls to 52-Week Low on AI Threats
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