🚨 TWO MAJOR RESEARCH FIRMS ARE WARNING ABOUT A POTENTIAL MULTI TRILLION DOLLAR AI DISASTER.
TS Lombard and Gartner have released some shocking estimates about what could happen if the AI spending boom collapses.
According to TS Lombard's Dario Perkins, a sharp collapse in AI spending could trigger:
• S&P 500 crashing 30%.
• Tech stocks plunging 40%.
• $125–190 BILLION in credit losses.
• Around 800,000 jobs lost.
• More than $20 TRILLION in stock market value wiped out.
And now Gartner has issued an even more disturbing warning about the money being poured into AI infrastructure.
According to Gartner:
• AI companies are expected to spend nearly $1 TRILLION on infrastructure in 2026 alone.
• Another $6 TRILLION could be spent between 2027 and 2030.
• AI data center owners would need to generate $8.5 TRILLION in revenue through 2030 to cover spending, financing costs and earn a 12% return.
• But Gartner expects no more than $3.6 TRILLION in AI revenue attributable to data centers during that period.
That's a nearly $5 TRILLION gap between the revenue needed to justify the investments and the revenue Gartner expects.
And the situation gets even worse.
Gartner warns that more than $3.5 TRILLION in AI infrastructure spending could be exposed to impairment by 2030.
By 2032, more than $4 TRILLION in asset value could be at risk of write-downs.
It also predicts that over 80% of neocloud providers could cease operating independently by 2030.
The biggest problem is that these companies are spending enormous amounts of money on GPUs and data centers that could become outdated before they generate enough revenue to recover their costs.
And the stock market is heavily exposed.
The Magnificent 7 alone account for roughly 35% of the S&P 500's market value.
All seven have significant exposure to AI through their businesses, investments or infrastructure spending.
If AI companies start cutting spending, chipmakers, cloud providers and data center operators could all take a massive hit.
With AI-related debt potentially reaching $2.9 TRILLION by 2027, the damage could spread to banks and other lenders as well.
This is no longer just about whether AI companies are overvalued.
The bigger risk is that trillions of dollars are being invested in infrastructure that may never generate enough profit to justify its cost.
And if the AI spending boom suddenly reverses, the damage could spread far beyond technology stocks.
A $20 trillion market crash is a scenario, not a certainty, but the amount of money at risk is becoming impossible to ignore.