US stocks slide as Broadcom outlook rekindles fears of an AI investment bubble
Summary
US markets fell as investors reacted to signals that AI infrastructure growth may be running into margin pressure and capex reality checks, with Broadcom’s outlook amplifying concerns. The move dragged other AI-adjacent names and put the spotlight back on whether today’s spending pace can translate into durable profits, not just revenue growth. A key takeaway is that the AI trade is maturing: the market is starting to separate “AI demand exists” from “AI demand is profitable at scale,” especially for hardware/system sellers. For builders and buyers of AI, this kind of volatility tends to accelerate interest in efficiency—cheaper inference, better utilization, and more defensible unit economics.
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