$Microsoft(MSFT)$ The real danger is to AI hardware stocks. The huge capex jump by hyperscalers on the back of pandemic revenue has been extrapolated into the future - AI hardware stock valuations assume capex spikes year after year.
Since hyperscaler revenue is finite, this is impossible. 70% capex growth is impossible according to the arithmetic taught in third grade when revenue is growing around 10%. Capex/revenue is already at a record.
The big party is in the AI hardware food chain. Hyperscalers fund the party, but have run out of money.
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