The AI infrastructure buildout bubble appears to be deflating, posing a significant risk to the broader stock market bull case and GDP growth projections. As the AI narrative has been a primary driver of recent market performance, its potential collapse signals an impending economic downturn.
Market participants are responding with increased demand for long-term bonds and precious metals. This shift reflects expectations that policymakers will utilize monetary expansion tools to counter deflationary pressures, as economic contractions remain politically untenable in the current environment.
AI Infrastructure Bubble Shows Signs of Bursting Amid Economic Downturn Fears
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