Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTAnushka MukherjiSat, June 13, 2026 at 3:00 PM GMT+2 10 min readFor a few years now, artificial intelligence (AI) has been the market’s undisputed growth engine, powering massive gains for tech giants and fueling relentless investor optimism. However, a growing number of strategists are beginning to question whether the AI boom can maintain its current pace, with rising AI token costs emerging as a potential headwind for the sector. Among the skeptics is Wells Fargo (WFC) Chief Equity Strategist Ohsung Kwon, who recently warned that the market’s AI-fueled surge may be entering a more challenging phase.“The sugar high rally is likely over,” Kwon said, describing the recent market pullback as a reminder that “nothing goes up every day, forever.” While he stressed that the current tech selloff was initially driven more by market positioning than weakening fundamentals, he pointed to what he sees as the most immediate risk to AI stocks is the end of “token-maxxing.” The concern centers on rising AI token costs as AI labs scale back subsidies that had previously helped keep usage expenses in check.More News from BarchartTired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now!As those costs climb, companies ranging from Walmart (WMT) to Uber (UBER) have begun signaling that their AI budgets could be consumed much faster than expected. According to Kwon, any slowdown in AI spending could have significant implications for the broader investment theme that has fueled many of the market’s biggest winners. The challenge arrives at a particularly difficult moment for hyperscalers.Companies such as Microsoft Corporation (MSFT), Meta Platforms (META), Alphabet (GOOG) (GOOGL), and Amazon (AMZN) are already ramping up capital expenditures amid supply-chain constraints and mounting cost inflation. As infrastructure spending climbs, these companies may be forced to pass higher costs on to customers just as businesses grow increasingly sensitive to AI-related expenses.Reflecting those concerns, Wells Fargo has moved from a bullish stance in April to a “firmly neutral” outlook this month, with Kwon saying the firm is “unenthused about this market.” So, with concerns about rising costs, slowing demand growth, and mounting spending commitments beginning to surface, here’s a closer look at two hyperscalers that could be particularly vulnerable if the AI trade starts to lose momentum.Founded in 1975 by Bill Gates and Paul Allen, Microsoft has evolved from a small software startup into one of the most influential technology companies on the planet. Headquartered in Redmond, Washington, the tech giant has shaped the modern digital era through iconic products such as Windows, Office, Teams, and Xbox, platforms that have become deeply embedded in the way people work, communicate, and entertain themselves.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info