So far in 2025, five of the so-called Magnificent Seven tech stocks that have invested aggressively in Artificial Intelligence (AI) — Apple, Microsoft, NVIDIA, Amazon and Alphabet — declined, lagging the broader S&P 500 Index through March 25.

Two developments have caused investors to question the wisdom of spending billions to build out data centers: news that Chinese firm DeepSeek developed a less expensive AI model and Microsoft’s disclosure that it will be pumping the brakes on some data center projects. A third concern is the broader market volatility brought on by tariffs imposed by the Trump administration.

Although the stocks may be volatile, the companies continue to spend aggressively, as is evident from the view on the ground.

The AI revolution has shifted from a cloud story rooted in Silicon Valley and other tech hubs to a story of reindustrialization and economic transformation across the Midwest, southwest and mid-Atlantic. The search for locations with enough land, access to plentiful power resources and skilled labor has led to staggering levels of construction in Arizona, Texas, Louisiana, Ohio and a host of other states.

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And as always, your weekly market update is here.