Is the AI Capex Bubble About to Burst? What 250 Years of Market History Tell Us.

When it comes to a capital spending bubble, the trick isn’t dancing when the music is playing, but knowing when it’s time to sit down. The scale of AI capital expenditures has been astounding.

Since the start of 2024, roughly $500 billion has been spent on chips, $350 billion on power infrastructure, $200 billion on construction, and $100 billion on networking.