The AI infrastructure trade is recovering after recent investor concerns about hyperscaler spending. The PHLX Semiconductor Sector (SOX) had dropped 29% from June 22 to July 29, but Tuesday earnings reports boosted sentiment. CoreWeave, a data center firm, reported year-over-year revenue growth of 112% in Q2 with a large order backlog, and its stock rose more than 19% on Wednesday. Nebius saw 450% revenue growth year-over-year as companies buy its AI cloud storage, and its stock surged 32% on Wednesday. Brad Neuman, director of market strategy at Alger, which invests in Nebius, Nvidia, and other AI infrastructure stocks, said his firm sees the AI buildout as a major opportunity, adding, "I think we're more worried about supply than demand." The upbeat reports follow hyperscalers like Microsoft and Amazon showing robust growth in their cloud businesses in Q2 earnings calls at the end of July. JPMorgan this week raised its 2026 S&P 500 price target to 8,000. This sets up the AI trade ahead of Nvidia earnings on August 26. Nvidia's stock is down 4.9% since mid-May. Nvidia is the largest company on the planet with a $5.4 trillion market cap and a bellwether for the broader AI trade.