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The AI trade lives in a constant state of having to prove itself to investors.

Is demand hot enough to justify the premium valuations on the Magnificent Seven stocks? Are the valuations on new capital raises from OpenAI (OPAI.PVT) and Anthropic (ANTH.PVT) bordering on insane based on strong expectations of future business?

It's no different now, despite the broad market being back in rally mode and Big Tech leading the way.

Here are a few hints that things are just fine in AI infrastructure land.

The latest clue AI demand remains smoking hot: Elevators. Otis (OTIS) CEO Judy Marks told Yahoo Finance today that the company is seeing very robust demand for its new AI data center-friendly elevator.

Said Marks, "It's a very durable elevator that handles a much heavier load ... So in a chip factory, if you need to move precious cargo such as rack servers, you need a more robust elevator. You need it more rugged, which means it's got a heavy-duty frame. It's got extra cushioning."

"It's just really a new offering we now have brought across the globe, starting in North America across a wide range of loads, so 6,000 to 20,000 pounds ... So it has to always be available in these kind of intense, high-demand facilities, and obviously comes with a much higher price point."

Bits and pieces on recent AI demand trends: Investors have pivoted aggressively from defensive oil and gold positions back into the AI trades, bolstered by Taiwan Semiconductor's (TSM) strong earnings and a stronger outlook for AI demand last week.

The report proved the sector’s fundamental growth remains unbreakable despite geopolitical volatility.

Amazon has also been a strong performer the past month as investors bet its AWS business will be lifted by exposure to demand from key customer Anthropic (ANTH.PVT).

The average gain for a member of the Magnificent Seven complex is 11% over the past month, with the largest increase at 20% for Amazon.

As an added sweetener, Nvidia (NVDA) CEO Jensen Huang struck a bullish note in a recent blog post.

"We have only just begun this buildout. We are a few hundred billion dollars into it. Trillions of dollars of infrastructure still need to be built. Around the world, we are seeing chip factories, computer assembly plants and AI factories being constructed at unprecedented scale. This is becoming the largest infrastructure buildout in human history," Huang said.

Bottom line: Bet against the AI infrastructure build-out at your own risk. Explains Barclays strategist Venu Krishna in a new note, "Taking a strategic view at 30,000 feet, we think the opportunity set is larger than the risk set, which should be a net positive for US equities in the aggregate. AI investment expands the addressable market for compute, software, data, infrastructure, and energy, while adoption boosts productivity across both the old and new economy."

Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.

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