Agentic AI
The new AI revolution with fantastic profit potential
The big 3 in cloud computing, also known as hyperscalers, Amazon with 30%, Microsoft with 23% and Alphabet with 14% market share dominate the cloud market. With the additional AI offerings such as Agentic AI, Amazon, Microsoft and Alphabet will expand their position of power even further. Agentic AI is an advanced form of AI that uses autonomous AI agents based on AI from the cloud infrastructure to perform complex tasks without direct human supervision. Agentic AI marks the transition from generative AI from passive chatbots to autonomous systems that independently plan and execute complex, multi-step tasks for the 3 major hyperscalers. This is a massive opportunity, but also a technical challenge.
The financial firepower of the tech companies is so great that potential competitors can hardly keep up. This is because the use of Agentic AI requires a huge technical infrastructure with far more computing power than conventional generative AI. While a classic prompt generates a one-time response, AI agents have to plan iteratively, use different tools, and correct themselves. This is only possible in the cloud (digital data storage on the Internet) with enormous amounts of computing capacity, which Microsoft, Amazon and Alphabet in particular offer. They benefit enormously, as continuous operation and complex workflows drastically increase the daily consumption of cloud resources, especially expensive GPUs/NPUs. The 3 hyperscalers provide the gigantic data centers and compute clusters necessary to coordinate millions of autonomous agents in real time for enterprises. They also offer new product categories such as the integration of agent platforms, they no longer position themselves only as providers of pure computing power, but offer their own developer tools, such as Google Cloud Agent Builder, Azure AI Foundry or Amazon Bedrock Agents, to make it easier to create agents. The trend is changing from fixed subscription prices to consumption-based billing. When companies use agents as digital employees who analyze data, answer emails or execute processes around the clock, the hyperscalers generate steady revenue via the compute cycles and API calls they use.
To build something similar to the 3 hyperscalers, a company would have to spend many billions, newcomers can't do that.
For all these reasons, the big 3 US high-tech companies are unstoppable.
The magical combination of cloud computing and Agentic AI will lead to fantastic profits for Alphabet, Microsoft and Amazon over the next 5 years, according to JR Finanz Research's analysis.
They are gigantic money printing machines and top recommendations from
JR Finance Research.
Alphabet's revenue reached just under $120 billion in Q2 2026, up 24% from the prior-year quarter, and profit rose to a fantastic $36 billion, mainly due to a strong increase in its cloud division, which exploded by 82.9%.
Cash flow in the past 12 months was $174 billion. Alphabet will invest up to $205 billion in the expansion of AI and data center infrastructure (capex) in 2026. Of the 3 hyperscalers, Alphabet is the favorite of JR Finanz Research.
The share price has more than doubled in the past 12 months and is thus the best performer, as the chart below impressively shows. .
Alphabet price target 2027: $460 - nearly 40% upside potential
Microsoft also achieved excellent figures, revenue 90 billion dollars, plus 18%. Profit rose by 22% to 35.3 billion dollars, similar to Alphabet. The growth driver here was also the cloud division Azure, which achieved growth of 43%. Cash flow in the past 12 months rose to $155.2 billion. Microsoft will invest at least $120 billion in Capex in 2026.
Amazon's sales cracked the $200 billion mark for the first time, rising by 20% to $200.6 billion. Profit was $27.5 billion, up 43%, an impressive increase in profits. Revenue in the Amazon Web Services (AWS) cloud increased by 37%. Cash flow in the past 12 months was $161.4 billion. Amazon's budget for capex investments is $200 billion for this year.
These impressive revenues and profits of the 3 leading cloud providers show that the large investments in building AI infrastructure such as data centers are having a very positive impact on the revenue and profits of the leading hyperscalers. In 2026, the investments in data centers of the 3 major cloud providers plus Meta and Oracle will amount to over 900 billion dollars. In 2027, these investments will increase significantly to $1.6 trillion because Agentic AI requires enormous computing power. Jensen Huang, Nvidia CEO, predicts an investment volume of 3 to 4 trillion dollars for 2030 due to Agentic AI, which would correspond to a gigantic increase.
The AI megatrend will therefore continue for many years to come due to Agentic AI, the next evolutionary stage after generative AI, the most important growth driver in the coming years.
The rise of Agentic AI massively exacerbates the already enormous AI infrastructure requirements of data centers and is one of the largest investment cycles in the history of technology.
While classic generative AI systems mainly answer questions, AI agents will be able to work independently in the future. They can plan tasks, make decisions, develop software, conduct analysis and research, serve customers, create financial models, and coordinate workflows, among other things.
Agentic AI is thus evolving from a digital employee. Many experts expect companies to become millions of AI agents in the future and massively increase corporate profits. Agentic AI could thus trigger the biggest increase in productivity since the Internet.
Classic infrastructures that are designed for short chatbot queries are not sufficient for the continuous operation of active agents. The architecture of data centers is therefore changing dramatically.
Nvidia with monopoly position in AI chips
When building the AI infrastructure with data centers, you need high-performance chips. Here, Nvidia is the market leader by a wide margin and is driving the age of Agentic AI.
Nvidia is by far the biggest beneficiary of the current capex boom in the technology sector. The massive infrastructure investments in data centers by leading hyperscalers such as Alphabet, Microsoft, and Amazon are driving demand and prices for Nvidia's highly complex graphics processing units (GPUs). The chips produced by Nvidia are the global gold standard and have a big lead over the other chip producers.
The new Vera Rubin is the next generation of Nvidia's AI data center systems and is built on the core components Rubin GPU and Rubin CPU. It is specifically designed for Agentic AI and complex deep restoring processes. Nvidia's Vera Rubin opens up new dimensions of Agentic Ki.
Nvidia's new prosessors for laptop and CPU designed specifically for the use of Agenti AI. With the new RTX Spark Superchip, Nvidia has officially entered the market for PC and laptop processors, attacking established PC GPUs from Intel and AMD.
Thanks to the unbroken wave of hyperscaler spending, Nvidia is recording historic profit and revenue growth in its data center division and AI accelerators.
In Q2 2026, Nvidia released fantastic quarterly numbers. Nvidia increased its revenue by 106% to $96 billion. Profits surged by 124% to $60 billion, an 85% increase compared to the previous year. The profit margin reached an incredible 75%.
For Q3, Nvidia forecasted revenue of $108 billion.
For the first time, CEO Jensen Huang gave a revenue forecast for the upcoming fiscal year.
With 70% for fiscal year 2027, this exceeded estimates of 44%.
Afterward, Nvidia's stock rose 9% to $230.
Nvidia is considered the top investment by JR Financial Research for AI chips due to its monopoly position. Nvidia's stock price has increased by almost 800% over the past 3 years.
Nvidia price target for 2027: $500 – over 120% upside potential
All the analysis firms and investment banks have significantly raised their price targets for Nvidia to $400–$515 after the fantastic quarterly results and the outstanding outlook for fiscal year 2027.
With nearly $20 earnings per share for fiscal year 2027, Nvidia is extremely cheap with a P/E ratio of 11 and, alongside Micron, is another top performer.
Due to the fantastic business figures and the strong outlook, we recommend buying Nvidia between $200 and $215. (09/03/2026)
Nvidia's CEO Jensen Huang said after the earnings report: The demand is extremely strong and what's unbelievable is, it's continuing to accelerate.
Nvidia is also a leader in robotics technology, providing hardware and software for many robotics companies.
Robotics is a future trillion-dollar market.
US data centers that need immense computing power and storage capacity through Agentic AI require Nvidia high-performance chips and Micron memory chips.
Nvidia and Micron are the biggest winners in the US data center boom, which is only at the beginning of a 10-year investment cycle.
Micron Technology Market Leader in AI Memory Chips
With Agentic AI, not only is the need for computing power increasing, but the amount of data required is also growing explosively. Every AI agent needs training data, memory, data storage, and fast data access. As a result, storage technology will become one of the most important bottlenecks in the coming years. The paradigm shift to Agentic AI is massively increasing the storage requirements in US data centers and is causing the required storage capacity to explode by 7 - 10 times compared to pure raw data.
In the memory sector, Micron will benefit by far the most and is by far the largest and only remaining large manufacturer of memory chips in the USA. With thismonopoly position in the course of the massive investment in AI, Micron has become a key player for US. tech companies.
Micron reported revenue of $41.5 billion for Q2 2026. up 346% year-on-year.
Profit rose by a staggering 1200% to $28.4 billion
The profit margin of a sensational 84.6% even surpasses Nvidia,
Micron, as a leading U.S. manufacturer of memory chips, benefited from the extremely high demand and associated shortage of memory chips for data centers and AI applications as part of the AI boom, leading to significantly higher sales prices and driving record numbers. The production for 2026 and 2027 is already sold out.
Micron is the top recommendation of JR Finanz Research in the field of memory chips.
Micron's stock price has exploded by about 900% in the past 15 months.
Micron price target 2027: $2000 – over 100% upside potential
Here too, all analysts and investment banks have raised their Micron targets to up to $2000 following the business figures for Q2 2026, which were far above expectations.
With a P/E ratio of only 5.6, Micron is extremely undervalued. And because of the earnings momentum in the coming years, it’s our top pick.
Due to the extremely high demand for memory chips, Micron is currently building two memory plants for $50 billion for 3,500 employees.
This means that revenue and profit will continue to increase in the coming years.
Price target by the end of 2028: $3,000
Since the business figures for the 3rd quarter will already be released on 09/30/2026, we recommend buying before the release between $880 and $920. (As of 09/03/2026)
Artificial Intelligence - Biggest Megatrend Since the Internet
With Agentic AI, robotics and quantum computing, several exponential technologies are coming together at the same time. Each of these technologies would be a trillion-dollar market on its own.
Together, they will fundamentally change the global economy and usher in an era of exponential growth.
The U.S. tech companies will continue to extend their lead in agentic AI, robotics and quantum computing, attracting many investors worldwide who want to invest in the biggest megatrend since the internet to earn staggering profits.
