Why the AI Sector Needs a Cold Shower: Reconciling Investment with Consumer Reality

This year's spring reporting season is revealing a highly curious and alarming tendency. We're seeing the markets beginning to nervously react and to stumble on news that a year ago would have caused an unrestrained rally. Companies are reporting stellar AI revenue growth and exceeding forecasts, but investors are increasingly pressing the “sell” button. This is neither a randomness nor a temporary glitch of algorithms. This appears to be the first symptom of the approaching macroeconomic gravity. 

To understand the true nature of what is happening, we urgently need to change our perspective. The market was too long obsessed with the micro-level: investors studied various stats with a magnifying glass. From teraflops to new chip bandwidths, data center energy efficiency, purchased server quantities, and more. However, an analysis built exclusively on the extrapolation of historical financial indicators of separate corporations in a vacuum right now loses its meaning.