A former UBS chief investment strategist warns that AI CapEx (capital expenditure) is accelerating at a record pace, lifting valuations and concentrating power in a handful of technology giants. In a post published in the Financial Times, Ian Harnett says the same forces that drove the boom may now be signaling its top — echoing the last great tech cycles that ended in collapse. He points to runaway spending among hyperscalers and a narrowing of stock leadership across major US indexes as symptoms of excess. “The AI ‘bubble’ looks to be approaching its endgame. The dramatic rise in AI capital expenditure by…
Author: Henry Kanapi
Henry Kanapi
Henry Kanapi is a journalist and editor covering the intersection of artificial intelligence, financial markets, and technology disruption. He has sourced, written, and edited thousands of stories on crypto, banking, and macroeconomics as Senior Editor at The Daily Hodl, where he helped shape coverage for an audience of over two million monthly readers. At CapitalAI Daily, Henry brings a decade of newsroom experience to fast-paced reporting on AI breakthroughs, market shifts, fraud cases, and regulatory battles. His focus is on accuracy, clarity, and exposing how money moves in the age of artificial intelligence. Henry’s work has been cited by leading financial outlets, investment firms, and research communities tracking the future of markets. He is committed to a high editorial standard rooted in transparency and trust.
Jefferies has turned bearish on Apple, warning that the company’s much-anticipated foldable iPhone could fail to ignite a new upgrade cycle amid slowing smartphone demand. In a new interview, Jefferies analyst Edison Lee says the firm has downgraded Apple (AAPL) from Hold to Sell, citing a lack of meaningful innovation and mounting structural headwinds across the mobile industry. “This is a longer-term call. I think that the smartphone industry—not just Apple, but all the Android guys too—is actually facing a much more serious structural slowdown, mainly because there are no innovative features that your current phone cannot do.” He says…
A senior Deutsche Bank strategist says growing concerns over the runaway AI trade are prompting investors to seek safety elsewhere. In a new interview, Adrian Cox, thematic strategist at Deutsche Bank Research Institute, says the AI trade is beginning to show “red lights,” a sign the market may be underestimating the risks tied to record capital spending and inflated valuations. “The red lights, I would say that it is reasonable to be concerned about the amount of CapEx that’s going on, and in particular, whether it’s going to be possible to recoup the expenditure within the life of the chips.”…
A veteran Wall Street analyst says the market’s most powerful AI plays may still be hiding in plain sight. In a new Fox Business interview, former Citigroup executive and current Evercore ISI senior managing director Mark Mahaney outlines which tech giants he believes are best positioned for the next phase of the AI trade. He says he has his eye on Alphabet (GOOGL) following a landmark court ruling, where a federal judge allowed Apple to maintain its lucrative default search arrangement with Google. “It’s still our top pick… We’ve had a pretty big run, though, in Google. We made this our…
Investor exuberance over artificial intelligence is fueling a powerful stock rally that Goldman Sachs says is beginning to resemble a FOMO (fear of missing out)-driven surge. In a new report, Oscar Ostlund, global head of content strategy, market analytics, and data science for Goldman’s digital platform Marquee, says bullish sentiment among clients has climbed to the highest level since December 2024, with 40% expecting the S&P 500 to outperform global peers this month, reports Bloomberg. The optimism, Goldman warns, has reached a point where fear of missing out may be overtaking fundamentals. “Not so distant talks about high valuations and…
Bank of America says the rapid expansion of the Nvidia-driven AI infrastructure is exposing a critical weakness in data-center design, one that most investors are overlooking. In a new CNBC interview, Andrew Obin of BofA Securities says the Wall Street narrative around Nvidia’s growth is missing the deeper physical and electrical realities driving the next leg of AI spending. While investors focus on chips and compute power, he argues the hidden bottleneck lies in the hardware underneath: power delivery and cooling systems that are no longer sufficient for next-generation AI racks. Obin says data centers once treated electrical and cooling…
A new Yale study finds no evidence that AI has caused job losses across the US economy, countering widespread fears of mass displacement. Researchers at Yale’s Budget Lab analyzed labor-market data collected since ChatGPT’s release in November 2022 and concluded that the mix of occupations has changed no faster than in previous waves of technological change. “Our metrics indicate that the broader labor market has not experienced a discernible disruption since ChatGPT’s release 33 months ago, undercutting fears that AI automation is currently eroding the demand for cognitive labor across the economy.” The team compared the pace of occupational turnover…
The battle for dominance in generative AI is shifting, with new data showing Google’s Gemini climbing rapidly as ChatGPT begins to lose its once unshakable grip. Google’s Gemini has more than doubled its share of generative AI traffic over the past 12 months, climbing from 6.5% to 13.7%, according to new data from Similarweb. The surge comes as ChatGPT, still the market leader by a wide margin, has seen its dominance slip. OpenAI’s share fell from 87.1% a year ago to 73.8% today, a drop of 13 points. The figures highlight a widening gap between the leader and its strongest…
Goldman Sachs CEO David Solomon says artificial intelligence is reshaping the way enterprises operate, with the bank allocating billions to AI and technology investments this year. Speaking at the Italian Tech Week in Turin, Solomon says AI is accelerating the bank’s productivity, transforming coding, and expanding enterprise capacity. “I think the business of work is getting transformed by AI broadly… And so, if you think about AI, you know, AI really allows smart, talented, driven, sophisticated people to be more productive, to touch more people, to have better information at their disposal, better analysis. I mean, this is a journey…
Artificial intelligence is eroding one of cybersecurity’s most basic defenses: the ability to tell what’s real from what’s fake. In a new global survey commissioned by Yubico, researchers found that people routinely misidentify AI-generated messages, exposing companies and consumers to a surge of targeted fraud. “One of the key threats AI poses in the realm of cybersecurity is its uncanny ability to mimic human communication patterns.” The research, conducted by Talker Research between August 15 and August 27, 2025, polled 18,000 employed adults across nine countries, including the United States, the United Kingdom, Germany, France, Japan, India, Australia, Singapore, and…