$MSFT (Microsoft) is abandoning big chunks of their data center projects. This contradicts the loud claims they were making last quarter. Boasting about a never ending surge in AI demand and that they could not build data centers fast enough to meet it.
Demand for AI is simply not has high in an environment where profitability matters. When profits are not a concern companies can afford to burn cash in new trends in case they become “the next big thing”. But when budgets need to be tight, these experiments need to prove themselves. This is what we're seeing now. If a recession is truly coming then this will become the cover for all big tech news.
The AI boom might go on only if AI really improves productivity or replaces workers. Otherwise it’s game over.... Show More
I never recommending shorting. The potential movement is extremely asymmetric, and so is the risk.
What I do recommend is to stay invested. Even when we smell trouble. The question then is to find companies that can withstand or even benefit from that kind of trouble.... Show More
Isnt it because of quantum relieves the need fkr so many data centres ? AI is old news now,priced in as they say... Show More
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