IS THE AI BUBBLE ABOUT TO BURST? When stocks repeatedly fall below their 200-day SMA, investors may be signaling a change in expectations. Two of the five stocks are already below their long-term trend lines, Nvidia is sitting almost exactly on its 200-day SMA, and Palantir and Microsoft remain comfortably above theirs. The divergence is important. Businesses directly responsible for financing and constructing AI infrastructure are showing substantially greater weakness than some of the companies benefiting from that spending. The market may be starting to question whether the companies building AI infrastructure can generate sufficient returns on their investments.