AI trade looks cheap as retail exits and hyperscaler capex keeps rising
JOBhakdi · x · 2026-07-25
The AI trade is being called unusually cheap as retail exits and capex keeps rising
The author argues that the market is overly pessimistic on AI right now: retail investors have mostly stepped away, “smart money” believes there is no AI bubble, and macro and geopolitical risks are already priced in. He expects AI usage and value to keep compounding exponentially.
Key points:
- Retail participation has fallen sharply.
- Institutional money is waiting on the sidelines because of macro risk and AI-bubble fears.
- The author says AI demand keeps growing, which should push capex higher.
- He expects hyperscalers and neoclouds to keep beating earnings and raising guidance.
- Bottom line: the AI trade looks “incredibly cheap” to him now.
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