Tom Lee: A $7 Trillion Wave Is Hitting The Stock Market - These 3 Stocks Are Set To Dominate It

foremost the market is huge. I mean it's $200 trillion m minimum but it's also growing by about 7 trillion a year. Okay, that's I mean just think about that for a minute. Every year there's another $7 trillion of liquid assets that's looking for a place to invest. If you all think it's a bubble, then you're likely to not be pushing things to become a bubble because you all think it's a bubble. Jack GBT was launched in 2023. So, we're 3 years into the innovation coming from artificial or super intelligence. The total buildout of internet and mobile and handsets in 2026 was about 35 trillion. The AI infrastructure spend is about 30 trillion. So it cost about the same. Here's the thing. Cisco didn't peak until 2000. Okay? And between 1993 and 2000, Cisco went down 50% twice. So both you had nearly a wipeout twice. And I think we're basically today in 1997. I I think we're far from a bubble. >> The prevailing narrative across Wall Street claims we are floating inside a dangerous overinflated AI bubble bound for an inevitable crash. Yet this frantic consensus ignores fundamental historical context and capital dynamics. The average fund manager today possesses a look back window of barely 10 years, leaving them completely blind to structural tech revolutions. When you examine the actual balance sheets of the global economy, the numbers tell a radically different story. Total liquid assets across equity and fixed income markets currently exceed $200 trillion, expanding by a staggering $7 trillion in fresh capital every single year. A $1 trillion annual hypers scale capital expenditure commitment isn't draining the financial system. It is absorbing less than 15% of new global liquidity seeking yield. Comparing present infrastructure buildouts to past tech cycles confirms that we are not at the tail end of a frenzy, but rather sitting precisely in 1997. During the late 1990s internet and mobile network rollout, global infrastructure spend reached roughly $35 trillion in inflationadjusted terms before the market fully matured years later. Current cumulative AI infrastructure commitments sit near $30 trillion, a nearly identical physical setup, but supported by an economy that generates vast free cash flow rather than speculative debt. Hyperscaler capital expenditure from the world's leading tech balance sheets is projected to compound at over 25% annually through 2030, driven by real enterprise deployment rather than empty valuation multiples. To capitalize on this multi-trillion liquidity wave, investors must look past short-term volatility and target the indispensable bottlenecks powering this expansion. The largest capital allocations over the coming decade will flow directly into three critical pillars. The primary secondary compute titan dominating high-end server CPUs. The critical liquid cooling and power distribution infrastructure without which next generation data centers cannot operate and the primary semiconductor monopoly anchoring the entire global AI transformation. Here are the three deep value infrastructure leaders positioned to absorb this immense annual capital influx today. Let's begin with our first selection, advanced micro devices, stock ticker AMD. While Wall Street historically categorized AMD strictly as a secondary player behind primary GPU providers, the structural mechanics of artificial intelligence infrastructure have rapidly evolved. As a computing, spatial intelligence, and multi-step reasoning models sweep through enterprise tech, the workload bottleneck is shifting back toward high-end server central processing units. This structural transition plays directly into AMD's core operational strengths. The company has officially emerged as the market leader in premium server processors with current generation supplies effectively sold out through upcoming cycles as global tech hyperscalers scale out their hardware platforms. From an operational and financial standpoint, the sheer speed of this expansion is outpacing legacy Wall Street baseline models. Driven by massive infrastructure deployments across leading AI model developers and social media platforms, institutional forecasts now project AMD's server processor sales alone could surpass $50 billion over the coming years. Total corporate revenue estimates are expanding toward the $125 billion milestone, propelled by a doubling of data center segment performance yearover-year. Gross margins continue to widen toward 55% to 60% levels, creating immense operational leverage. As net margins expand, long-term projected earnings per share could realistically jump from singledigit baselines up toward $30 to $40 per share over the next 3 to four years. Beyond raw hardware manufacturing, AMD is taking aggressive strategic steps to fortify its entire software and architectural stack. The firm's recent 8.2 2 billion acquisition of Frontier AI research powerhouse World Labs brings worldclass spatial intelligence and robotics capabilities directly into its ecosystem. This strategic move allows the company to develop full stack hardware and software environments tailored specifically for autonomous systems and physical AI, challenging established software monopolies before next generation robotics markets mature. Supported by a Fortress balance sheet featuring over $8.8 billion in net cash and $10 billion in annual operating cash flow, AMD possesses both the financial runway and architectural momentum to capture a massive share of the annual $7 trillion capital wave. Turning to our second pick, Verdive Holdings, trading under ticker symbol VRT. You simply cannot deploy tens of trillions of dollars in highdensity compute clusters without solving the extreme engineering challenges of heat dissipation and power distribution. While market pullbacks occasionally hit physical infrastructure providers, creating short-term valuation disconnects, Verdives's operational fundamentals remain exceptionally strong. The company occupies a dominant position in an industry igopoly, generating roughly 85% of its revenues directly from data centers. As compute platforms transition from legacy air cooling to highdensity liquid cooling and advanced 800vt direct current architectures, Verdives's dollar content capture per megawatt continues to expand aggressively. Financially, Verdive is demonstrating remarkable operating leverage and cash generation. Fullear corporate sales guidance points toward $14 billion, reflecting over 31% organic revenue growth year-over-year. Adjusted operating earnings and earnings per share are both surging at nearly 60% annually. Even more impressive is the firm's cash flow performance with quarterly operating cash flows soaring 241% year-over-year to $1.1 billion. This cash surge is driven by aggressive customer prepayments as major data center operators rush to secure critical power, coolant distribution, and thermal management equipment well in advance. Innovative modular solutions like one core and smartrun are further industrializing data center construction, removing complex site level setup times and accelerating factory delivery value. Looking ahead, industry capital expenditure for data center buildouts is projected to reach trillions of dollars through the end of the decade, establishing a massive multi-year demand runway. Co-engineering next generation cooling architectures and direct current power designs alongside semiconductor leaders aligns Verdive directly with upcoming highdensity chip rollouts. Valuation metrics reflect this compelling growth profile with forward price to earnings growth ratios sitting at highly attractive levels near 0.6. Supported by an expanding high margin service revenue stream and unmatched end-to-end engineering scale, Verdive stands out as a core picks and shovels compounder ready to absorb the immense annual capital inflows driving global AI expansion. Moving to our third and final stock, we arrive at the absolute epicenter of the global artificial intelligence compute boom. Nvidia Corporation, stock ticker NVDA. As major tech hyperscalers deploy their share of the annual 7 trillion capital wave into full-scale data center builds, Nvidia remains the primary hardware beneficiary. Despite holding a dominant market position across AI accelerators and enterprise networking stacks, the stock's valuation structure looks remarkably compressed relative to its growth profile. On forward outeryear earnings estimates, the stock trades at roughly 14 times to 15 times earnings, a discount compared to broader market indexes, while non-GAAP price toearnings growth ratios sit near a historic low of 0.2 to 0.5. The structural demand driving NVIDIA's balance sheet continues to break historical precedents. Top global tech hyperscalers are scaling infrastructure spending by over 54%, pushing total capital commitments toward $1.2 trillion over the next 2 years. Analysts project corporate revenues will climb past $692 billion over coming cycles, backed by pristine gross margins exceeding 74% and industry-leading net profit margins. Management's unmatched internal conviction was recently highlighted by expanding its share repurchase authorization by a massive 150 billion, bringing total capital return allocations to $235 billion through fiscal 2028. Beyond raw GPU manufacturing, Nvidia is aggressively surrounding its ecosystem with defensive software and distribution modes. High-profile acquisitions like HuggingFace ensure the company controls the default distribution layers for openweight models, keeping millions of software developers natively integrated into its compute architecture. While supply chain bottlenecks and data center power buildouts remain active variables, cloud backlog figures exceeding $2 trillion confirm that compute demand still significantly outruns global supply. Trading at an extraordinary growth adjusted discount while generating over $134 billion in operational cash flow, Nvidia stands as the primary structural anchor of the entire $200 trillion AI transformation. Wall Street's obsession with short-term sentiment has created a rare valuation disconnect across the infrastructure foundation of the digital economy. As $7 trillion in fresh capital continues flooding global markets annually, positioning early in these three infrastructure powerhouses offers the clearest path to compounding capital throughout this multi-deade shift.