Foreign media reports that large-cap tech stocks, which have led the market rally in recent years, are facing valuation and investment pressures, with funds beginning to shift towards AI infrastructure. The article mentions that companies like Microsoft and Meta have fallen from their recent highs, and Bitcoin has also dropped significantly from its October high last year.

Tech giants and Bitcoin pullback

The article argues that the market isn't abandoning the AI theme, but rather re-evaluating which sectors will benefit. The AI narrative, previously dominated by cloud computing giants, is now facing challenges due to rapidly rising capital expenditures. In contrast, companies providing the underlying capabilities for AI are beginning to attract more funding.

• Microsoft shares fell approximately 33% from their peak.
• Meta fell approximately 28% from its high.
• Bitcoin is about 50% lower than its peak last October.

Chip and storage funding

Foreign media believe that the main beneficiaries of this round of growth are semiconductors, memory chips, and related assets that meet the demands of data centers. This is because AI model training and inference still require continuously expanding computing power, memory, and server infrastructure, and these sectors directly benefit from increased spending.

The article mentions that Sandisk, a memory chip company, has seen its stock price rise by approximately 800% this year, while the Global X Artificial Intelligence & Technology ETF, which focuses on related companies, has risen by approximately 140%. Micron Technology has risen by approximately 230% this year, and the VanEck Sem token offering ETF has risen by approximately 67%.

$725 billion in capital expenditure

The article states that Alphabet, Amazon, Microsoft, and Meta's combined capital expenditures this year are projected to reach $725 billion, a 77% increase from last year's record level. As AI investment continues to expand, free cash flow is struggling to fully cover these expenditures.

The article also mentions that Alphabet, Amazon, and Meta borrowed a total of approximately $93 billion last year, accounting for about 6% of total corporate bond issuance. Foreign media believe that the market's concern is no longer just about excessive AI spending, but also about a reassessment of who can benefit more steadily in this investment cycle.

SpaceX joins the rotation list

Besides chips and storage, the article also lists SpaceX as a potential investment target, citing its connection to both aerospace and AI expansion themes. Foreign media outlets believe this indicates the market's focus hasn't shifted away from AI, but rather from large technology platforms to infrastructure providers.