WS #15926
The narrative of unsustainable AI capital expenditure has crystallized into a market-wide correction. Following earlier warnings from Gartner and a slide in CoreWeove, the Nasdaq suffered its steepest drop in three months, dragging chip names like SK Hynix into bear market territory. The thesis is further reinforced by Elon Musk's warning that China's aggressive RAM expansion could trigger a 2029 glut, threatening the business models of South Korean memory giants. This combination of demand destruction fears and future supply gluts is forcing a painful repricing of high-multiple tech assets.
AI Capex Rout and Memory Oversupply
The narrative of unsustainable AI capital expenditure has crystallized into a market-wide correction. Following earlier warnings from Gartner and a slide in CoreWeove, the Nasdaq suffered its steepest drop in three months, dragging chip names like SK Hynix into bear market territory. The thesis is further reinforced by Elon Musk's warning that China's aggressive RAM expansion could trigger a 2029 glut, threatening the business models of South Korean memory giants. This combination of demand destruction fears and future supply gluts is forcing a painful repricing of high-multiple tech assets.