Investing Experts AI spending surge, contrarian take on tech stocks
27 snips
Nov 13, 2025 Sara Awad, a tech equity analyst at Tech Contrarians, dives into the AI spending frenzy and its implications. She discusses OpenAI's staggering commitments against its revenues and argues that fears of an AI bubble may be overblown. Explore the surge in CapEx from tech giants and how it reflects competitive strategies. Sara points to potential supply chain red flags and predicts a short-term deflation with significant corrections due by mid-2026. She also highlights key semiconductor players and intriguing opportunities beyond AI-driven investments.
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AI Is The Market’s Central Driver
- AI is the dominant market theme and is propping up broader tech momentum right now.
- That centrality raises acute investor anxiety about a potential AI bubble vs. deflation scenario.
OpenAI’s Huge Commitments Outpace Revenues
- OpenAI and others are committing massive future capacity that far exceeds current revenue visibility.
- Markets worry companies are spending for a best-case scenario without clear near-term returns.
Tier-One CapEx Has Surged
- Major cloud players raised CapEx materially this year, signaling aggressive AI infrastructure buildup.
- Investors now scrutinize CapEx commentary and fear spending for ideal outcomes without contingency plans.