Overview
- Jim Cramer declared the 'Year of Magical Investing' over after a sharp sell‑off that saw the Dow drop nearly 800 points and the Nasdaq fall more than 2%.
- DWS chief Stefan Hoops said today’s AI‑led gains are powered by retail investors with untested behavior in a prolonged downturn, highlighting unusual market concentration in a few giants.
- An Accel report estimated AI data‑center buildout could require about $4 trillion over five years to reach 117 gigawatts by 2030, implying roughly $3.1 trillion in revenue to repay the spend.
- Concerns range from Goldman Sachs and Morgan Stanley’s dot‑com parallels to Michael Burry’s claim that hyperscalers understate chip depreciation, even as Groq’s CEO argues the investment will be returned with interest.
- Market pros urge selectivity and some rotation toward cash‑generative assets, with several pointing to Nvidia’s earnings next week as a key test for the AI spending narrative.