Shares of AI-related power companies drop sharply amid concerns over hyperscaler capex and rising long-term yields.

Shares of companies involved in behind-the-meter power for AI infrastructure, including FTAI Aviation, GE Vernova, and Caterpillar, fell 5-6% due to market worries about the scale of AI-related capital commitments by major tech firms. A Wall Street Journal report highlighted $3 trillion in off-balance-sheet AI power commitments, raising doubts about future spending. Additionally, higher long-term Treasury yields, hitting a 19-year high, pressured valuations of these long-duration assets. Despite strong backlogs and revenue growth, investor profit-taking and rotation into defensive sectors caused a broad sell-off in AI hardware and power infrastructure stocks. The fundamentals remain solid, but market sentiment is cautious amid concerns over hyperscaler capex durability.