The Capex Paradox: Who Funds AI If AI Stops Paying?

Safety is thin

The S&P 500 has hit record highs on the back of AI, but the trade is now splitting between “AI hardware” winners and “AI services” losers, echoing the late 1990s hardware-vs-services divergence that preceded major volatility.

Investors worry that massive AI capex may not translate into sustainable profits for service companies, pushing their valuations toward GFC-era lows and increasing tech credit stress.