#ai-capex

#ai-capex

The Damage Report Amazon closed at $199.60 on February 12th, down 13.5% year-to-date and 17.7% over the past month. The stock peaked at $258.60 within the last 52 weeks, meaning it has fallen roughly 23% from that high. The decline accelerated sharply in early February, with the stock's RSI dropping to 23.46, deep into oversold territory and the lowest reading since the 2022 bear market.

Big Tech keeps raising its spending plans for artificial intelligence infrastructure, yet shares of Nvidia Corp., one of the biggest beneficiaries of that flood of cash, have been largely stagnant for months. The stock is up less than 1% since the beginning of the fourth quarter and has been largely range bound despite hitting a record high in late October.

Good morning. During earnings calls this week, the CFOs of big tech companies, Meta and Microsoft, delivered a similar message: the AI race requires unprecedented capital spending, but that spending is disciplined, demand-driven, and ultimately margin-accretive rather than reckless. The companies urged investors to look past headline numbers and focus instead on utilization, long-term economics, and visible revenue traction.

Leveraged ETFs demand a different monitoring framework than buy-and-hold funds, and SOXL's 3x daily exposure to semiconductors makes the distinction especially sharp. With $13.6 billion in assets and an extremely high portfolio turnover rate driven by daily rebalancing, this fund combines sector momentum and structural decay. As 2026 approaches, investors need to separate broad semiconductor trends from the mechanics that make leveraged products behave differently than their underlying holdings.

Shares of Amazon.com Inc. (NASDAQ: AMZN) lost 1.38% over the past five trading sessions after losing 1.43% the five prior. Despite having turned a corner after struggling for most of 2025, Amazon was caught up in the broad market's AI-induced sell-off, which began in late October and carried through November as concerns about a bubble persist. Still, the stock is in the green this year with a gain of 2.71%, but over the past year, shares have slid 2.89%.

After yesterday's debacle in which approximately $1 trillion in market capitalization was erased from the stock market, some technology stocks are still hunting a bottom. With the Nasdaq Composite now down 3% for the month of November so far, the AI rally has lost its steam for the time being as the markets wrestle with bullish fundamentals overshadowed by negative headlines. While the selling hasn't been pretty for the bulls, it does not appear to be over, at least not yet.

Something remarkable is going on in the equity market. Stock prices of companies with negative earnings have in recent months outperformed stock prices of companies with positive earnings,

One unexpected side effect of the Magnificent 7's race to build massive AI data centers-and source the power needed to run them-is that they are reducing share buybacks to fund them, according to Goldman Sachs. Companies routinely buy back their own shares to incentivize investors for holding them, to reduce the number of shares available (thus boosting earnings per share), and to boost their own stock prices.