Stocks are surging on AI-driven corporate earnings, which is good news for big tech investors but bad news for workers being quietly replaced.

• Semiconductor and hardware stocks are booming, with Taiwan and Korea leading the rally on chip and memory demand.
• Complacency is near record highs, with Goldman's risk appetite indicator in the 99th percentile going back to 1991.
• A record $600 billion in new shares is expected to be issued in 2026, money that has to come from somewhere.
• Earnings growth is expected to double next year because AI lets companies cut headcount without mass layoffs, especially in call centers.
• Long-term unemployment is rising like in a recession, even though there is no official recession, because displaced workers cannot reskill fast enough.
• Software stocks are now the cheapest they have been since 2013, and short interest is near 100%, setting up a possible squeeze.

Outlook: The AI-led meltup likely continues as corporate profits expand, but workers without AI skills will keep falling behind.