AI Infrastructure Valuation Bubble Burst
AI infrastructure stocks that surged in Q2 are showing technical weakness and are likely to decline further in Q3
Too little corroboration in the last 3 days to call a trend (6 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"The combined depreciation expenses of Microsoft, Amazon, Alphabet and Meta reached $44.5 billion in Q2 2026, up 24% year-on-year."
"He explained industries like newspapers, utilities and phone companies seemed stable until the issues during the 2008 collapse. 'This time around, it might be software because of AI... There are moving tectonic plates underneath it, which causes the industry to be challenged.'"
"I strategically reduced exposure to semiconductors like MRVL, AMD, CRWD, and MU, while doubling down on hyperscalers AMZN and META benefiting from capital rotation."
"This comes as investors increasingly worry about the extreme optimism over artificial intelligence. South Korea's Kospi, which saw a massive surge earlier this year amid the AI frenzy, entered bear market territory on Wednesday, plunging 20% from its peak."
"AI fatigue, semiconductor sector weakness, and concerns over a potential compute capacity glut are driving recent market caution and selloffs."
"However, if we look at both the fading "down the stairs" pattern in the percentage price oscillator (PPO) indicator at the bottom of the chart, and the pending breakdown of the 20-day moving average, SOXX, and thus most of Q2's big winners, look like they are about to provide a mirror image soon. Be very careful here. There could be more days like Thursday's more-than-5% spill coming."