Technology stocks around the world are rising again, but this is not a simple repeat of the old “tech is the future” trade. The current rally is being driven by a more specific and powerful force: artificial intelligence moving from a market story into real corporate revenues, capital expenditure and earnings guidance.

The strongest gains are not spread evenly across the entire technology sector. They are concentrated in companies that are either building the infrastructure for AI or monetising the shift through cloud platforms, enterprise software, memory chips, advanced semiconductors and data-centre-related supply chains.

In other words, investors are no longer buying artificial intelligence only as a promise. They are buying companies that are already turning AI demand into reported numbers.

AI has moved from hype to hard revenue

The clearest example is Nvidia. The company reported record revenue of US$81.6 billion for the first quarter of fiscal 2027, up 85 percent from a year earlier. Its Data Center revenue reached US$75.2 billion, up 92 percent year-on-year. Those figures show why Nvidia has remained the centre of the AI equity trade.

The company is not merely associated with AI; it is selling the processors, networking and computing infrastructure required to train and run AI models.

This is also why the market has been willing to reward the stock despite concerns about valuation. Investors are not only looking at present earnings. They are looking at the scale of future AI infrastructure spending across cloud providers, enterprises, governments and AI start-ups.

But Nvidia is not the only beneficiary. In fact, Broadcom has become another major example of how AI demand is spreading across the semiconductor value chain. The company reported second-quarter fiscal 2026 revenue of US$22.2 billion, up 48 percent year-on-year.

More importantly, its AI semiconductor revenue reached US$10.8 billion, up 143 percent from the previous year. Broadcom also said it expects AI semiconductor revenue to reach US$16.0 billion in the third quarter, implying year-on-year growth of more than 200 percent.

This tells us something important: the AI rally is no longer limited to one company or one product. It now includes custom AI accelerators, networking chips, connectivity infrastructure, high-performance computing systems and cloud-scale architecture.

The memory-chip boom is becoming a major part of the story

One of the strongest areas of the rally has been memory chips. Reuters reported that Micron Technology’s shares were up 298 percent in 2026, with investors watching its earnings as a key test of whether the AI-led semiconductor rally can continue.

AI systems do not only need processors. They also need high-speed memory to move and process huge volumes of data efficiently. This is where high-bandwidth memory, or HBM, becomes important. As AI models become larger and more complex, memory performance becomes a key bottleneck. That has lifted investor interest in memory producers such as Micron, SK Hynix and Samsung Electronics.

The memory trade is powerful, but it is also inherently risky. Memory chips are historically cyclical. Prices can rise sharply when demand is strong and supply is tight, but they can also fall when capacity expands or demand slows. Investors are therefore trying to judge whether AI data-centre demand can create a longer, more profitable cycle than previous memory booms.

The AI rally is global, not just American

The rise in tech stocks is not limited to Wall Street. In fact, Taiwan Semiconductor Manufacturing Company, better known as TSMC, is one of the most important global beneficiaries of AI chip demand. The company reported May 2026 revenue of approximately NT$416.98 billion, up 30.1 percent from May 2025. From January to May 2026, its revenue reached NT$1.9618 trillion, up 30 percent from the same period a year earlier.

TSMC sits at the heart of the AI supply chain because many leading chip designers depend on it to manufacture advanced processors. When demand rises for AI accelerators, high-performance computing and advanced chips, TSMC is one of the first companies to benefit.

Europe also has a major AI infrastructure winner: ASML. The Dutch semiconductor-equipment company reported first-quarter 2026 net sales of €8.8 billion, gross margin of 53 percent and net income of €2.8 billion. ASML also raised its 2026 total net sales outlook to between €36 billion and €40 billion, with management linking the outlook to stronger demand from AI-related infrastructure investment.

ASML is important because its lithography systems are essential for producing the most advanced chips. This makes it a critical supplier to the global semiconductor industry, even though it does not design chips itself.

Cloud platforms are spending heavily

Another reason for the uptick is spending among cloud companies. Microsoft reported fiscal third-quarter 2026 revenue of US$82.9 billion, up 18 percent year-on-year. Microsoft Cloud revenue reached US$54.5 billion, up 29 percent. Azure and other cloud services revenue increased 40 percent. The company also said its AI business surpassed US$37 billion in annual revenue run rate, up 123 percent year-on-year.

This is significant because cloud platforms are both buyers and sellers in the AI economy. They buy chips, servers, networking equipment and data-centre capacity. They then sell cloud computing, AI tools, productivity software and enterprise AI services to customers.

That dual role makes cloud companies central to the AI investment cycle. However, it also creates one of the biggest questions in the market: will the returns justify the spending?

Big technology companies are spending extraordinary sums on AI infrastructure. Reuters reported that Big Tech AI spending is expected to exceed US$700 billion in 2026, up from earlier estimates of around US$600 billion. A separate Reuters analysis said AI-related capital expenditure could reach roughly US$800 billion this year, while Morgan Stanley raised its 2027 AI capex outlook to US$1.12 trillion.

That scale of investment supports demand for chipmakers, data-centre operators, utilities, power equipment firms, cooling providers and semiconductor equipment companies. But it also raises the risk of overinvestment. If AI revenue does not grow fast enough to justify this level of spending, parts of the rally could reverse.

Enterprise software is getting a second wind

AI is not only benefiting chip companies and cloud platforms. It is also supporting parts of the enterprise software market. SAP is a good example. The German software group reported current cloud backlog of €21.9 billion in the first quarter of 2026, up 20 percent and up 25 percent at constant currencies. Cloud revenue increased 19 percent, or 27 percent at constant currencies, while Cloud ERP Suite revenue rose 23 percent, or 30 percent at constant currencies.

This shows that businesses are not only experimenting with AI but also modernising their core systems, moving workloads to the cloud and integrating AI into finance, HR, supply chain, customer service and operational functions.

For investors, enterprise software offers a different type of AI exposure. Chip stocks may offer faster growth, but they are more cyclical. Enterprise software companies may grow more steadily because they often rely on recurring subscriptions, long-term contracts and deep customer relationships.

The trillion dollar question: Why are tech stocks are rising now?

Our analysis reveals five major reasons behind the global technology rally.

First, earnings are supporting the narrative. Companies such as Nvidia, Broadcom, Microsoft, TSMC, ASML and SAP are not only talking about AI. They are reporting revenue growth, strong demand, rising cloud backlogs or improved guidance.

Second, AI infrastructure spending remains strong. Cloud providers and hyperscalers are still building data centres, buying chips and expanding compute capacity.

Third, supply constraints are improving pricing power. In advanced chips, high-bandwidth memory and semiconductor equipment, demand remains strong and capacity is not always available quickly.

Fourth, the rally has broadened across the supply chain. Investors are no longer looking only at the most famous AI names. They are also buying memory producers, foundries, networking firms, cloud platforms, software companies and data-centre infrastructure providers.

Fifth, investors are treating AI as a multi-year capital expenditure cycle. Like previous infrastructure waves – telecom networks, cloud computing and smartphones – AI requires years of investment before the full economic impact is visible.

But the rally is not without risk. The biggest risk currently is valuation.

FactSet reported that the S&P 500 was trading at a forward 12-month price-to-earnings ratio of 21.0 in May 2026, above its 5-year average of 19.9 and its 10-year average of 18.9. That does not automatically mean the market is in a bubble, but it does mean investors are paying a premium for future earnings growth.

When expectations are high, companies must keep delivering. A stock can report strong results and still fall if investors expected even better numbers. This is especially true in AI-linked names, where valuations often reflect several years of anticipated growth.

There is also concentration risk. A relatively small group of technology and semiconductor companies has been responsible for a large portion of global market gains. If sentiment turns against those leaders, indices can weaken quickly.

Another risk is overinvestment (as discussed above). The AI infrastructure boom depends on the assumption that demand for AI computing will continue to expand rapidly. If enterprises slow adoption, if monetisation disappoints or if cloud companies cut capital expenditure, the impact could be felt across the supply chain.

Geopolitics is another major issue. Semiconductor supply chains are global and sensitive. Export controls, US-China tensions, Taiwan-related risks, trade restrictions and energy-market disruptions can all affect technology stocks.

Is it too late to invest?

This is the question many investors are now asking.

The balanced answer is that it may be too late for easy gains, but not necessarily too late for disciplined long-term investors.

The first phase of the AI rally rewarded almost everything connected to artificial intelligence. The next phase is likely to be more selective. Investors may no longer be rewarded simply for buying any company with an AI story. The market will increasingly ask harder questions: is the company growing earnings, is the valuation still reasonable, and can AI demand translate into sustainable cash flow?

This is where the debate becomes more nuanced.

Goldman Sachs Research raised its 2026 year-end S&P 500 forecast to 8,000 and projected S&P 500 earnings per share of US$340 for 2026 and US$385 for 2027. Wells Fargo also raised its year-end 2026 S&P 500 target to 7,950 and lifted its 2026 EPS forecast to US$340.

The bullish case is therefore not based only on excitement. It is based on the view that earnings growth can continue to support higher equity prices.

But investors should not confuse “not too late” with “low risk”.

Some AI-linked stocks have already risen sharply. Reuters reported that Micron shares were up 298 percent in 2026, while the Philadelphia Semiconductor Index remained near all-time highs. These are powerful moves, but they also increase the possibility of short-term pullbacks if results disappoint or if guidance weakens.

For investors entering now, the question should not be: “Can this stock still go up?” A better question is: “What must happen for this valuation to be justified?”

For Nvidia, the answer depends on continued demand for GPUs, networking and AI infrastructure. For Broadcom, it depends on custom AI accelerators and networking growth. For TSMC, it depends on advanced-node manufacturing demand. For ASML, it depends on sustained capacity expansion by chipmakers. For Microsoft, it depends on whether cloud and AI services can generate returns that justify heavy capital expenditure.

The risk is not that AI disappears. The risk is that the market has already priced in a very strong version of the future.

That means entry strategy matters. Investors who believe in the long-term AI theme may be better served by gradual accumulation rather than a large lump-sum purchase after a sharp rally. This could mean investing monthly, using diversified ETFs or spreading exposure across different parts of the AI supply chain.

There is also a difference between AI enablers and AI beneficiaries.

AI enablers are companies that provide the infrastructure required for AI: chip designers, foundries, memory companies, semiconductor equipment makers and networking firms. These companies are seeing strong demand now, but as discussed earlier, they can be cyclical.

AI beneficiaries are companies that use AI to improve existing products, customer retention, productivity and margins. These include cloud platforms, software providers, cybersecurity firms and digital service companies. Their growth may be less explosive, but their revenue streams can be more recurring.

A third category is AI-adjacent infrastructure. This includes data-centre operators, utilities, power-equipment firms and cooling companies. As AI data centres become larger and more energy-intensive, investors are increasingly looking beyond pure technology names.

Therefore – in our view – it is not too late to invest in technology stocks if the investor has a long-term horizon, understands the risks and avoids chasing momentum blindly. But it may be too late to assume that every AI-linked stock will keep rising simply because it has already done well.

The easy phase of the rally may have passed. The next phase will likely reward selectivity, patience and discipline.

How new investors in Oman can access these stocks

Investors in Oman who want exposure to global technology stocks generally have several routes. The first route is through an international brokerage account. Some global platforms allow eligible non-US investors to access US-listed stocks, ETFs and ADRs. Through such platforms, investors may be able to search for tickers such as NVDA, MSFT, AVGO, TSM, ASML or SAP, subject to platform eligibility, local rules and account approval.

The second route is through fractional shares. Some international brokers allow investors to buy fractions of eligible US, Canadian or European stocks and ETFs. Interactive Brokers, for example, says it offers fractional shares on more than 10,500 US stocks and ETFs, allowing investors to invest from as little as US$1 in eligible securities.

The third route is through exchange-traded funds. Instead of buying individual technology stocks, investors can consider ETFs that track broader technology, semiconductor, Nasdaq-100 or global equity indices. ETFs can reduce single-company risk, although they still carry market risk.

The fourth route is through American Depositary Receipts, or ADRs. Some non-US companies, such as TSMC, ASML and SAP, trade in the US through ADRs. This can make them easier to access through international brokerage accounts, although currency, tax and regulatory issues still apply.

The fifth route is through licensed local or regional brokers that offer access to international markets. Investors should verify whether the broker is authorised, understand custody arrangements, review fees and confirm how deposits and withdrawals are handled. Oman’s Financial Services Authority advises investors to verify the identity of entities before entering into transactions and to refer to authorised sources when checking investment firms.

Before investing, individuals should consider currency risk, brokerage fees, dividend withholding tax, estate tax implications for US-listed securities, volatility and whether the investment fits their financial goals.

Disclaimer: This article is for informational and educational purposes only. OERLive does not endorse, recommend or promote any of the stocks, ETFs, brokers or platforms mentioned. This article should not be considered investment advice. Investors should conduct their own research and consult a qualified financial adviser before making any investment decision.