WS #16026
The market is aggressively repricing AI infrastructure assets following a 14.46% weekly collapse in South Korea's KOSPI, driven by fears that hyperscaler spending is peaking. This systemic risk is compounded by surging yields in AI-focused debt like CoreWeave, which is dragging down leveraged players such as Applied Digital. With Meta's earnings approaching, investors are demanding proof that the projected $1.2 trillion in AI capex will translate into tangible revenue, leading to a sector-wide rotation out of semiconductors and into value plays. Apple is caught in a pincer movement of regulatory and fundamental headwinds. The DOJ is reportedly investigating whether a settlement with Apple would fail to curb its app restrictions, while UBS downgrades the stock citing weak iPhone demand and shortening Pro model wait times. Although the new iPhone Duo has sold out, the rapid depletion is attributed to limited initial production rather than overwhelming demand, leaving analysts skeptical about near-term revenue growth.
AI Capex and Valuation Reset
The market is aggressively repricing AI infrastructure assets following a 14.46% weekly collapse in South Korea's KOSPI, driven by fears that hyperscaler spending is peaking. This systemic risk is compounded by surging yields in AI-focused debt like CoreWeave, which is dragging down leveraged players such as Applied Digital. With Meta's earnings approaching, investors are demanding proof that the projected $1.2 trillion in AI capex will translate into tangible revenue, leading to a sector-wide rotation out of semiconductors and into value plays.
Apple is caught in a pincer movement of regulatory and fundamental headwinds. The DOJ is reportedly investigating whether a settlement with Apple would fail to curb its app restrictions, while UBS downgrades the stock citing weak iPhone demand and shortening Pro model wait times. Although the new iPhone Duo has sold out, the rapid depletion is attributed to limited initial production rather than overwhelming demand, leaving analysts skeptical about near-term revenue growth.