Chris Curl,
Editor
Nov. 13, 2025
The doomsayers are wrong.
The surge in technology stocks isn't over—it's shifting into a new phase where the fundamental drivers become even more powerful. And crypto will ride this wave higher into Q1 2026, not out of correlation, but because of capital flows and liquidity dynamics.
Here's the reality: hyperscale cloud providers are committing $359 to $602 billion to capital expenditures in 2026, up massively from this year.
Amazon, Microsoft, Google, and others are spending unprecedented sums on AI infrastructure, and this capital is deployed.
It's not theoretical. AWS, Azure, and Google Cloud collectively grew revenue 27% year-over-year in Q3 2025.
These companies are generating revenue from AI investments that are still in the early innings. The shift toward inference workloads—moving AI from expensive training to revenue-generating production—is creating a multi-year revenue pipeline that will compound.
Nvidia's (NASDAQ: NVDA) data center revenue grew 93% year-over-year. AMD (NASDAQ: AMD) projects 80% annual growth in AI data center revenue for the next three to five years.
These aren't boutique opportunities—they represent fundamental reshaping of how computing infrastructure operates. The semiconductor supply chain from TSMC to infrastructure providers will see sustained demand that justifies current valuations and supports higher prices ahead.
The monetary policy backdrop is even more constructive.
The Federal Reserve is cutting rates, with most economists expecting two to three additional cuts in 2026. Inflation is moderating toward the 2% target – at least officially. The Fed is ending quantitative tightening in December and will likely start expanding its balance sheet in Q1 2026.
This is a textbook liquidity-positive environment for risk assets. Lower rates specifically benefit growth stocks—the ones the market has been rewarding—because their valuations depend on discounted future cash flows.
Valuation concerns are overblown. Yes, mega-cap tech trades at a premium, but earnings are growing faster than stock prices. And unlike the dot-com bubble, revenues are strong.
The companies at the center of this rally—Amazon (NASDAQ: AMZN), Microsoft (NASDAQ MSFT), Alphabet (NASDAQ: GOOG), Meta (NASDAQ: META)—are reporting double-digit revenue growth driven by actual AI monetization, not hope. Meta and Amazon's recent earnings proved the market wrong about AI spending concerns. When the market worried about capital intensity, Amazon's AWS results showed that spending is yielding returns.
Now for crypto.
The game has changed. Bitcoin's correlation with the Nasdaq has recently collapsed to near zero.
This doesn't mean crypto will ignore a supportive macro backdrop—it means Bitcoin will do its own thing while benefiting from the same liquidity tailwinds that support tech.
Institutional adoption is accelerating at a pace that feels almost invisible to retail observers. Over 150 public companies now hold Bitcoin on their balance sheets. Spot Bitcoin ETFs have accumulated $60 billion in inflows. A planned launch of crypto trading at Charles Schwab in 2026 will inject millions of new retail participants into a market that's finally built mature infrastructure.
Regulatory clarity is emerging. The GENIUS Act in July 2025 legitimized stablecoins and created a clearer framework for institutional engagement. An executive order granted 401(k) retirement accounts full access to crypto. These aren't small policy shifts—they represent the foundation for institutional capital flows at a scale we haven't seen before.
Bitcoin's pullback from $124,000 to the $103,000 level is a healthy pullback, not capitulation. When the Fed ends quantitative tightening and liquidity conditions improve in Q1 2026, Bitcoin's post-halving supply dynamics—which have a 12-18 month lag—will support renewed strength.
Bitcoin is still poised to hit new highs by early 2026.
The setup for both assets is aligned. The government shutdown is ending, which will restore data flow and reduce uncertainty. The Dow's continued strength alongside the Nasdaq's consolidation suggests healthy market breadth rather than weakness. Tech's rotation into value is modest and represents portfolio rebalancing, not abandonment.
Yes, there are risks. Valuations could compress. Liquidity could tighten temporarily. AI spending could disappoint. But the structural drivers—multi-year capital commitments, Moore's Law limitations that make AI infrastructure a necessity, the maturation of institutional crypto infrastructure, and monetary policy accommodation—are too powerful to dismiss on cyclical concerns.
The tech surge carries through Q1 2026 because the AI buildout is real and has room to run. Crypto follows because it's benefiting from the same improving liquidity and risk appetite while developing its own institutional foundation.
The question isn't whether this rally ends. It's whether you're positioned correctly when capital rotates into quality picks that benefit most from this structural shift.
If you’re interested in capitalizing on the most meaningful gains these sectors provide, consider joining me at Digital Dispatch and Crypto Cycle.
These publications offer meaningful investment advice with active portfolios that you can follow to profit from the latest trends in this burgeoning 21st century economy.
Keep coming back,
Chris Curl
Editor, Daily Profit Cycle