STORY · FORSKNING_
The AI bubble is already bursting, we just don't know it yet
The Register discusses Q2 earnings from major corporations and concludes that the stock market is showing signs that the AI bubble is about to burst. Meta, Amazon, Apple and other large tech companies are experiencing dramatic share price swings, driven by concerns about massive investments in AI data centers, declining free cash flow, and uncertainty about returns on these investments.
WHY IT MATTERS
The pattern of massive stock price swings among megacap companies, high capex spending on AI infrastructure without clear profitability, and even 'positive' news being interpreted contradictorily by investors, is typical of the end of financial bubbles before correction.
SOURCES
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