QQQ fell 4.66%, NVDA fell 6.55%, and $AMD U.S. stock contracts plunged 17.25% in 24 hours to 408.53, with a trading volume of 255 million USDT. Apple fell just 1.86% that same night—the stocks propped up highest by the AI narrative came back down first.
Holders are topping up their margin, while those looking to enter are waiting for a signal. The ones who should really be nervous are companies selling growth on the back of AI capital spending—the money going out is real, but the pace of payback is uncertain.
Watch one number: in the next earnings report, can the growth in AI-related revenue keep pace with the growth in investment? If that ratio doesn’t hold up, the valuation is just a reflection of sentiment. BTC will probably face the same headwind tonight.