Overview
- Michael Burry resurfaced on X to allege that hyperscalers are inflating profits by extending hardware lifespans to understate depreciation, calling the practice a common modern fraud.
- The Bank of England said the risk of a sharp market correction has risen, citing mass enthusiasm for AI and the challenge of assessing new business models.
- Market gains remain unusually concentrated, with Nvidia reported at about 8% of the S&P 500 and Apple, Microsoft and Amazon together near 25.5% of the index.
- Analysts flagged record AI capex—figures cited include roughly $125 billion now and $400 billion announced—alongside Bank of America’s warning that data‑center building leans heavily on debt with uncertain monetization.
- Economist analyses outline three potential endgames if valuations break: a productive reallocation, a recessionary pullback, or a deeper stress scenario if large borrowers falter.