Beyond the Headlines: The Whole AI City

Chatbots and splashy launches get the attention. For investors, the bigger story is everything being built underneath them.

By Jennifer Jackson, Senior Wealth Advisor | The Jackson Group at CIBC Wood Gundy | October 2026

If it feels like every news story lately mentions artificial intelligence, you're not imagining it. Chatbots, new apps and splashy product launches are the part of AI most of us see. But when clients ask me how to think about AI as an investor, I suggest picturing something bigger: a new city being built.

Every city needs a foundation

Before anyone opens a shop, someone has to bring in power, pour concrete and run the wiring. AI works the same way. It's built in five layers, and each one depends on the layer beneath it.

1. The fuel (power and energy). AI runs on huge amounts of electricity, and someone has to generate and deliver it.
2. The brains (chips). These are the semiconductors every AI system runs on.
3. The buildings and wiring (data centres). This includes cooling, electrical gear, networking and real estate.
4. The landlords (cloud platforms). These are the companies that rent out computing power at massive scale.
5. The shops and offices (apps and software). These are the tools you actually use every day.

Why the bottom of the stack matters

Headlines focus on the top layer, which makes sense. That's the part we touch. But think about the California Gold Rush. Plenty of prospectors went home empty-handed. The people selling picks, shovels and blue jeans did just fine, because they got paid no matter who struck gold.

Much of the AI opportunity looks similar. The companies producing power, making chips and building data centres are needed whichever app or chatbot ends up winning. Those foundational businesses have often carried more reasonable valuations than the names grabbing the headlines.

The goal isn't to predict which AI company comes out on top. It's to make sure your portfolio fits your plan.

What this means for you

None of this is a reason to chase the latest hot stock. It's a reason to take a clear look at what you already own.

• Know your exposure. You may have more AI exposure than you think, possibly concentrated in a handful of well-known names at the top of the stack.
• Look underneath. You may also have room to diversify across the layers underneath: power, chips and data centres.
• Stay on plan. Every decision should fit your plan, your timeline and your comfort with risk, not the headlines.

That's the kind of conversation I enjoy having with clients. It keeps the focus where it belongs, so you can keep living along the way while the city gets built.

Where does AI show up in your portfolio?

If you'd like to walk through it together, give us a call. We'd be glad to sit down with you.

Jennifer Jackson | (519) 640-7643 | jennifer.jackson@cibc.ca | jenniferjackson.ca