Really helpful roundup. I liked how clearly you showed the Nasdaq having its worst week since June as money moved out of tech and AI stocks. It made the rough week easy to follow.
The weekly damage was real: SMH fell 10% and the Nasdaq more than 4%. But “last days” is a strong call. On our sector table, Tech is still #2 on 52-week relative strength (6.7), and it’s one of only two sectors beating SPY today. Its 50-day RS is negative (−1.89), so leadership is fading, not gone. And QQQ’s weekly trend is still intact; it’s back above its 20-week EMA this morning.
A rotation and a collapse look different. So far this looks like rotation.
I wouldn’t write off the whole sector here. TSMC just forecast roughly 58% revenue growth for Q4. There’s clearly still plenty of demand.
CoreWeave’s financing deserves a closer look, though. It recorded $640 million in net interest expense in Q2, almost a quarter of revenue. A huge backlog helps, but you still have to get the capacity running. Power delays push revenue back while interest keeps adding up.
I think we’re still at the beginning of the AI buildout. Companies are only starting to work out where they can use it properly. There will be expensive mistakes along the way, but I’d be more inclined to use this selloff to find the next winners than call the whole thing finished.
This is the part of the AI boom that worries me: what happens if the investment keeps growing faster than the actual return?
The article points to tech and AI stocks selling off, semiconductor weakness, and rising concern about how much debt some companies are taking on to fund the AI buildout. At the same time, oil above $100 and stubborn inflation are putting pressure on the broader economy too.
That connects directly to The 99% Perspective’s AI, Automation, and the Future of Work: Who Gets Replaced and Who Gets Rich? and The Missing AI Infrastructure Forecast. We’ve been asking what happens when billions are poured into data centers, chips, power, and grid expansion before we fully know whether the economics will hold up.
The biggest question for me is: if the AI investment cycle turns, who absorbs the losses? The tech companies and investors—or workers, communities, utility customers, and taxpayers who helped support the buildout?
We’ve seen before how quickly a boom can become someone else’s bill.
Really helpful roundup. I liked how clearly you showed the Nasdaq having its worst week since June as money moved out of tech and AI stocks. It made the rough week easy to follow.
The weekly damage was real: SMH fell 10% and the Nasdaq more than 4%. But “last days” is a strong call. On our sector table, Tech is still #2 on 52-week relative strength (6.7), and it’s one of only two sectors beating SPY today. Its 50-day RS is negative (−1.89), so leadership is fading, not gone. And QQQ’s weekly trend is still intact; it’s back above its 20-week EMA this morning.
A rotation and a collapse look different. So far this looks like rotation.
I wouldn’t write off the whole sector here. TSMC just forecast roughly 58% revenue growth for Q4. There’s clearly still plenty of demand.
CoreWeave’s financing deserves a closer look, though. It recorded $640 million in net interest expense in Q2, almost a quarter of revenue. A huge backlog helps, but you still have to get the capacity running. Power delays push revenue back while interest keeps adding up.
I think we’re still at the beginning of the AI buildout. Companies are only starting to work out where they can use it properly. There will be expensive mistakes along the way, but I’d be more inclined to use this selloff to find the next winners than call the whole thing finished.
This is the part of the AI boom that worries me: what happens if the investment keeps growing faster than the actual return?
The article points to tech and AI stocks selling off, semiconductor weakness, and rising concern about how much debt some companies are taking on to fund the AI buildout. At the same time, oil above $100 and stubborn inflation are putting pressure on the broader economy too.
That connects directly to The 99% Perspective’s AI, Automation, and the Future of Work: Who Gets Replaced and Who Gets Rich? and The Missing AI Infrastructure Forecast. We’ve been asking what happens when billions are poured into data centers, chips, power, and grid expansion before we fully know whether the economics will hold up.
The biggest question for me is: if the AI investment cycle turns, who absorbs the losses? The tech companies and investors—or workers, communities, utility customers, and taxpayers who helped support the buildout?
We’ve seen before how quickly a boom can become someone else’s bill.