Is the AI trade over? That depends on what “over” means. There are three scenarios: 1. Positioning reset AI became one of the most crowded trades in equities. Deleveraging can trigger a sharp selloff even if underlying AI demand remains strong. 2. Policy & funding shock — the current concern Data-center restrictions, power constraints and higher financing costs could slow the buildout and compress returns without ending AI growth. 3. Fundamental deterioration AI adoption slows, returns on spending disappoint and excess capacity emerges. This is the scenario where the AI cycle itself is truly breaking down. So far, the key question is whether today’s funding and policy pressures eventually turn into weaker AI demand and earnings. #AI #AIStocks #TechStocks #DataCenters