The AI bubble is starting to crack and tech stocks are getting crushed worldwide

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Something changed in the AI trade.

For years, investors rewarded one thing above everything else:

Spend more money on AI.

Build more data centers.

Buy more chips.

Move faster than everyone else.

Now the market is starting to question whether the payoff can actually match the spending.

Tech stocks are selling off around the world.

The pressure is hitting the companies that became the face of the AI boom.

Alphabet.

Amazon.

Microsoft.

Meta.

And the warning signs are getting louder.

“That was what I call the biggest scream from the stomach of the market in history.”

That was Jeremy Grantham describing a market signal he believes appeared near some of the biggest tops in history.

The idea is simple:

When investors become convinced a story cannot fail, the market can start sending warning signs underneath the surface.

Right now, the question is whether AI is entering that stage.

The spending numbers are enormous.

Alphabet plans around $180 billion to $190 billion in capital spending in 2026.

Amazon around $200 billion.

Microsoft around $190 billion.

Meta around $115 billion to $135 billion.

Together, the four giants are pushing more than $700 billion into AI infrastructure.

The problem is the profits have not caught up yet.