Precise Market Analysis.
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$IBM issued a dire profit warning that sent its stock tumbling. More details:
Brew Markets@brewmarkets
IBM stock is on track for its worst day ever. The company warned that its second-quarter earnings would be worse than expected.
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My take on the AI trade:
AI is likely the greatest invention in human history and will remain the biggest market theme for the foreseeable future.
But the companies bringing it to life may have a problem.
They’re spending $100bns building intelligence while everyone races to sell it cheaper.
Bear case: token prices fall faster than usage grows. The capex never earns an acceptable ROI and a lot of AI names get crushed.
Bull case: cheaper intelligence creates far more demand. Agents consume more compute. Infrastructure stays scarce. Sovereign AI means the US, China, Russia, Europe and the Gulf will all build their own stacks because no serious nation will trust another with its data, military or intelligence.
That means more HPC DCs / neoclouds, more power and more compute, even if tokens get cheaper.
The winners become some of the largest companies on earth.
AI wins either way. Not every AI name does.
Good luck.
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