Black Thursday: U.S. stocks went into free fall, and AI tech stocks are facing an unprecedented crisis of confidence.
The Nasdaq plunged 5.52% in a single day, while the S&P 500 fell 4.36%—their biggest one-day losses since April 2025.
After Democrats won control of the U.S. Congress, markets began to worry about tighter AI regulation, especially around data center construction.
But Xiaohuihui thinks politics was just the trigger.
The real issue is that investors used to be willing to bet on AI’s future. Now they’re asking:
1. When will the hundreds of billions of dollars invested start making money?
2. How long can demand for computing power keep growing?
3. How long can companies that borrowed money to build data centers sustain their cash flow?
The AI revolution isn’t over, but the days when you could make money by buying AI assets with your eyes closed may be.
From here on, cash flow deserves more attention than big stories.
So the question is: Is this a normal correction in the AI bull market, or is the bubble starting to burst?
The Nasdaq plunged 5.52% in a single day, while the S&P 500 fell 4.36%—their biggest one-day losses since April 2025.
After Democrats won control of the U.S. Congress, markets began to worry about tighter AI regulation, especially around data center construction.
But Xiaohuihui thinks politics was just the trigger.
The real issue is that investors used to be willing to bet on AI’s future. Now they’re asking:
1. When will the hundreds of billions of dollars invested start making money?
2. How long can demand for computing power keep growing?
3. How long can companies that borrowed money to build data centers sustain their cash flow?
The AI revolution isn’t over, but the days when you could make money by buying AI assets with your eyes closed may be.
From here on, cash flow deserves more attention than big stories.
So the question is: Is this a normal correction in the AI bull market, or is the bubble starting to burst?