Hyperscaler Earnings Will Dictate: 3-Minutes MLIV

Summary

Mark Cudmore lays out his view that a massive AI CapEx bubble is in its volatile end game. He thinks next week's hyperscaler earnings will likely show CapEx is not yet being cut, which could temporarily halt the chip stock sell-off. However, he warns that when CapEx plans eventually change, the bubble will pop, causing severe pain in AI-linked equities. Korean stocks are already seeing a dramatic collapse that he expects to scale up globally.

• Massive AI CapEx bubble is in its late, volatile stage but hasn't popped yet
• Hyperscaler earnings next week are expected to show continued CapEx, potentially ending the chip stock decline
• Korean equities are already suffering a dramatic collapse, foreshadowing broader pain
• Falling token costs and Chinese open-source models are commoditizing AI, adding pressure on CapEx
• When CapEx plans finally change, the bubble will burst, hitting semiconductors and spreading to the broader index