Particle.news
Download on the App Store

AI Trade Faces Reality Check as Investors Shift to Cash Flow and Proven Use Cases

Fresh ROI doubts make 2026 a test of whether vast AI buildouts translate into durable profits.

Overview

  • AI-linked stocks accounted for 75% of S&P 500 gains since November 2022, according to JP Morgan Asset Management.
  • An MIT study published in August 2025 found 95% of business generative AI projects failed to show measurable ROI.
  • Microsoft, Amazon, Alphabet and Meta continue to commit hundreds of billions of dollars to chips and data centers to expand AI capacity.
  • Advisory coverage highlights growing skepticism about heavy AI capex and debt-laden infrastructure bets, with recommendations to favor companies using AI to improve efficiency and margins.
  • Berkshire Hathaway has cut its Apple stake by about 73% since late 2023 and recently initiated a position in Alphabet, signaling a cautious repositioning in big tech exposure.