MRKT Matrix Bubble, Bubble, AI Trouble?
Oct 31, 2025
Amazon's stock skyrockets after a strong Q3, despite a planned layoff of 14,000 roles. Big Tech is engaged in a $380 billion AI spending spree with companies like Microsoft facing investor skepticism. A flood of over $200 billion in AI-related corporate bond issuance raises credit market worries. Michael Burry warns about potential market bubbles as Nvidia's valuation surpasses $5 trillion. Discussions also highlight the risks of relying solely on stocks for retirement.
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Amazon's AI-Led Revenue Surge
- Amazon's Q3 beat was driven by AWS growth and a 24% jump in ad sales.
- The company raised 2025 capex to $125B, citing surging AI demand.
Massive AI Capex Raises Bubble Questions
- Big Tech plans over $380 billion in 2025 capex for AI infrastructure.
- Markets debate whether this is transformative investment or an early costly bubble.
AI Borrowing Floods Credit Markets
- US companies issued over $200B in bonds to finance AI infrastructure in 2025.
- Heavy issuance concentrates risk and could strain credit markets if AI returns disappoint.