Investors punish AI heavy spending as S&P 500 trade fractures

uk.investing.com

Markets are no longer rewarding AI companies simply for heavy spending, with strong earnings now triggering sharp share-price falls, signaling the once-uniform AI trade is fracturing. This week, SpaceX fell 14% despite strong results ahead of a $101bn share unlock, while SK Hynix dropped 9% after record revenue. A Bank of America survey found 45% now call AI bubble the top market risk, up from 11%. Global AI investment is projected above $2.5tn in 2026, but infrastructure spending of about $400bn contrasts with only $100bn in enterprise revenue. Analysts urge differentiating real demand from financing-dependent growth.


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Investors punish AI heavy spending as S&P 500 trade fractures | News Minimalist