5/26/2026
By Charles Payne, CEO & Principal Analyst

Cloud Era Gives Way to Gen AI Era

We have morphed from the Cloud Era to the Gen AI Era, $435B up 5X since 2024, and it's turned everything upside down.

Software (IGV) was once eating the world, capturing 70% of application gross profits, followed by infrastructure and, finally, hardware.

Now, it's about semiconductors (hardware) capturing 79% of the value, with high marginal costs, and  computing and energy being the bottlenecks. The big difference is that tokens are destroying the seat license model.

Token Usage Soars

Cloud/SaaS exposure continues to get wrecked.

To read the full report, contact your account rep or email Info@wstreet.com

Charles Payne
Wall Street Strategies