AI capex cycle likely to end with market pushback, not spending cuts: Jefferies

Wait 5 sec.

Global brokerage Jefferies suggests the AI investment boom might falter not due to tech giants cutting spending, but investor impatience for returns. A significant wealth transfer to North Asia, evident in surging Korean and Taiwanese market caps, highlights where AI capital is flowing. US hyperscalers' recent underperformance and increased debt funding raise concerns about potential capital destruction if returns don't materialize.