Home

Market Outlook

Today's Market

Summary

Alphabet and Microsoft both missed AI capex expectations for Q3 - this bursts the AI infrastructure bubble.

Caterpillar reported a 22% increase in inventory; this signals overproduction and confirms the AI capex slowing thesis.

ServiceNow reports strong AI ACV but provides weak revenue guidance, indicating that AI monetization is lagging AI adoption.

These three stocks crashed after the report by 10-27%; that's what the bubble burst looks like.

pcess609/iStock via Getty Images

The AI bubble burst unfolding

The AI bubble burst thesis has been confirmed by Alphabet ( GOOG ) ( GOOGL ), Caterpillar ( CAT ) and ServiceNow ( NOW ). These companies are part of the

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions.…