AI Stocks Face Sell-off Amid Concerns Over Sustainable Capital Spending
Technology stocks and chipmakers are experiencing a global sell-off as investors question the sustainability of massive AI capital expenditures. Concerns are mounting that the current spending cycle may be unsustainable, with Morgan Stanley projecting AI-related borrowing to exceed half a trillion dollars this year. This volatility has hit memory stocks like Micron and Sandisk, while Apple faces pressure from shareholders demanding concrete results over AI roadmaps. Despite the downturn, some analysts argue the AI infrastructure cycle is only beginning and that momentum remains strong. While small-cap stocks have emerged as unexpected winners in the AI wave, the market remains fragile, influenced by profit-taking and geopolitical tensions in the Middle East that have further complicated…
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