Overview
- Thursday’s tech-led slide hit AI and data center names hard, prompting Jim Cramer to say the “mania” feels like it is starting to unwind and to flag insider selling and secondary offerings.
- DWS chief Stefan Hoops warned the rally looks unusually retail-driven and fragile, saying there is no playbook if small investors rush to lock in gains.
- A fresh Accel analysis estimates about $4 trillion of AI data center capital spending over five years, with roughly $3.1 trillion of revenue required to recoup those outlays.
- Industry voices diverged, with executives such as DeepL’s Jarek Kutylowski and Picsart’s Hovhannes Avoyan cautioning on exaggerated valuations and “vibe revenue,” while JPMorgan’s Mary Callahan Erdoes and Groq’s Jonathan Ross argued the long-term industrial case for AI remains intact.
- Several strategists characterized the selloff as a short-lived “mini panic,” noting expectations that Nvidia’s upcoming earnings could stabilize sentiment even as concentration and rich multiples keep calls for caution in play.