AI Boom Could Leave Global Markets Exposed When Spending Slows
AI spending surge raises fears over sustainability and future profitability concerns.Global markets face rising risks if AI investment growth suddenly slows worldwide.Defensive sectors could outperform during an AI market reversal period ahead globally. The artificial intelligence rally continues to fuel markets, corporate spending, and investor optimism worldwide. Technology giants still pour billions into data centers, chips, and software infrastructure. However, some analysts now warn that investors focus too heavily on how long the boom will last. Instead, they should prepare for what follows when spending growth eventually cools. History shows that every major technology surge eventually loses momentum, and the economic consequences often spread far beyond Silicon Valley. Technology investment reached nearly $1.5 trillion last year. That figure stands far above the inflation-adjusted peak during the dotcom era. Moreover, companies continue expanding their AI infrastructure despite rising concerns over profitability. Several analysts increasingly question whether current revenue growth can justify such massive capital expenditures. Why a Slowdown Could Shake Global Markets Previous technology booms offer important lessons for todays market environment. The cybernetics expansion faded during the early 1960s. Similarly, the late-1960s growth cycle eventually lost steam. More significantly, the dotcom collapse triggered a deep decline in technology investment after 2000. Even a modest retreat could create