Institutional conviction in AI infrastructure just fell off a cliff.
Today's flow tells the story: lots of churn, almost zero conviction buying in hyperscalers, neoclouds, or photonics names. Even compared to earlier this week—which was already rough—today felt like everyone's frozen.
No one wants to step in first, even with decent signals from SpaceX, Meta, Bloom, and Western Digital earnings.
The real issue now? Cost of capital. Financing concerns are choking the entire AI trade. When money gets expensive, even the best growth stories start to look shaky.
Today's flow tells the story: lots of churn, almost zero conviction buying in hyperscalers, neoclouds, or photonics names. Even compared to earlier this week—which was already rough—today felt like everyone's frozen.
No one wants to step in first, even with decent signals from SpaceX, Meta, Bloom, and Western Digital earnings.
The real issue now? Cost of capital. Financing concerns are choking the entire AI trade. When money gets expensive, even the best growth stories start to look shaky.