The mega cap Tech stocks (MSFT, GOOG, AMZN, META, NVDA) have made an existential bet on Artificial Intelligence hardware capacity that will be a huge bust.
The solution side is not keeping up with the hardware arms race. There is no ROI from AI solutions. pic.twitter.com/8BzMOzE7co
— Mac10 (@SuburbanDrone) April 28, 2025
Back in 2018, Trump started a much smaller trade war with China, Canada, and Mexico which coincided with his tax cut. Bond yields rose all year and stocks ended down -20% until the Fed pivoted.
This time, Trump's trade war is global in scope. Tariffs on China are 10x higher.… pic.twitter.com/ToYWapqsCO
— Mac10 (@SuburbanDrone) April 29, 2025
The problem for U.S. investors is that the Trump Plan has killed the Tech A.I. bubble – as we see in the chart below. The MAG 7 remains in a bear market even after the big bounce.
The collapsed Artificial Intelligence (A.I.) bubble is now the No Intelligence (N.I.) bubble.
No… pic.twitter.com/83uSM0imsE
— Mac10 (@SuburbanDrone) April 28, 2025
— Heisenberg (@Mr_Derivatives) April 29, 2025