WS #16536

The market is undergoing a violent repricing of the AI infrastructure thesis, anchored by Alphabet's historic 15% crash on earnings that failed to justify its massive capital expenditure. This event has triggered a broad-based selloff in software and cloud stocks, with Microsoft, ServiceNow, and Fortinet all sliding as investors question the near-term ROI of the AI buildout. The narrative has shifted from 'AI is inevitable' to 'AI capex is unsustainable,' creating a significant headwind for the entire technology sector and dampening the previous bullish tech rally.