For years, the market has operated on one simple assumption: AI spending would lift everything around it. Every new data center, every chip order and every infrastructure buildout was supposed to create a ripple effect that benefited the entire technology ecosystem.
But what if the opposite is starting to happen? One unexpected event this morning may have revealed the first real crack in that narrative, raising uncomfortable questions about whether AI’s massive capital spending boom is beginning to cannibalize the very companies investors expected it to enrich.
The questions raised this morning could wind up being contagious and spreading to other AI names…at a time when the market is already arguably the most overvalued its ever been in history.