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Investors are beginning to question whether AI revenue can justify the vast sums being spent on infrastructure, The Straits Times argues in an opinion piece. The sell-off has reached the chipmakers and cloud providers supplying the boom.
Why it mattersThe paper says the Philadelphia Semiconductor Index fell 14% in the month to 23 October, while CoreWeave lost more than 38%. It also points to a rally in Treasury bonds, usually a safe haven, despite rising inflation. That is a useful snapshot of investors reassessing the AI build-out, not proof that demand for AI has peaked. The hardware bill is getting harder to wave away.
Discuss: Do falling chip and cloud shares show investors are rightly demanding returns from AI, or are they mistaking a long build-out for a short-lived bubble?
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