The LLM Token Expenditures Index dropped nearly 60% in the second quarter, indicating a sharp decline in AI-related capital spending. This drop comes as global yields rise, increasing the cost of capital for major tech companies (hyperscalers) and squeezing their profit margins. Analysts suggest this marks the beginning of an AI bubble burst, which is expected to accelerate in the third and fourth quarters. Semiconductor stocks, which benefited most during the AI boom, are now facing a potential downturn as the market adjusts.
Semiconductor and memory stocks unexpectedly rose following a stronger-than-expected August jobs report showing 162,000 new payrolls versus 56,000 expected. This rally contrasts with declines in most non-AI stocks, suggesting some selling pressure in...
The robotics sector, including ETFs like BOTZ, ROBO, and ARKQ, presents early-stage growth opportunities but requires investors to be patient and manage position sizes carefully. Industrial robotics, which benefits from measurable demand and recurrin...
