Over the past few years, the AI boom has gone through clear phases. First it was the software itself. Then it was the chips and data centres. Now, a third and potentially far more destructive phase is taking shape.
This new phase is not about AI companies anymore. It is about dragging the rest of the economy into the bubble.
In 2023, the hype centred on OpenAI and similar firms. In 2024 and 2025, Nvidia and data centre operators took over as investors realised AI needed massive physical infrastructure. Those trades are now crowded, expensive, and largely tapped out. Valuations are stretched to the limit, with very little upside left.
So the story is shifting again.
Investors are now hunting for “AI-adjacent” plays. Construction firms. Crypto miners. Cooling and power companies. Wiring manufacturers. Generic software businesses that claim AI exposure. The logic is loose but seductive. If AI changes everything, then everything connected to AI must benefit.
We have seen this movie before.
During Covid, panic triggered a rush to build masks, sanitiser, and medical equipment. Capacity exploded overnight. Warehouses filled up. Then demand vanished just as quickly, leaving excess supply and crushed margins. The AI infrastructure buildout risks following the same path.
Hyperscalers are spending hundreds of billions building data centres, but there is still no proof that AI demand is real, durable, or profitable. Even worse, there is little evidence AI is actually improving productivity in the industry where it should shine most: software development. If it is not making workers more efficient or companies more profitable, what exactly is the end market supporting all this spending?
That is where the danger lies.
The first layer of AI suppliers is already fully priced. So capital is moving one step deeper, into companies that can claim AI contracts or future exposure without any guarantee that the money will ever arrive. Expect press releases, circular deals, and eye catching announcements. Expect stocks to spike on promises rather than cash flows.
When a wiring or construction company jumps 200 percent on an “AI deal,” look closely. In many cases, the spending exists only on paper.
Meanwhile, the AI industry itself is pushing to become too big to fail. Calls for government backstops, regulatory favours, and long term public contracts are already appearing. This is how bubbles try to survive when the fundamentals do not cooperate.
Markets are changing fast. That is why traditional safe assets and active strategies quietly outperformed last year.
There are only 200 lives spots available and the last time we ran a masterclass like this we ran out of spaces within 12 hours of our announcement.
If you want to understand what is really changing before the macro-economic reset becomes obvious to everyone, now is the time.
Click the link here to register for free and save your spot: https://event.webinarjam.com/x6xq5/register/oo8x9cmr
I’ll see you on the class.
Stay stoic,
Max