While the risk of a broad reassessment in hyperscaler AI capital expenditures is as high as it has been to date, the combination of historically strong S&P 500 sales and earnings growth and a large cohort of slower-moving investors suggests any deterioration in the AI narrative may take time to fully materialize.
At the same time, record bearish US stock bets continue to support the potential for a short squeeze before any meaningful correction, sustained recovery, or broader market decline, as positive options-related flows have thus far insulated the major equity indices from widespread contagion.
Lastly, rising public skepticism toward artificial intelligence, particularly among women and younger Americans, could increase political pressure for federal AI regulation, creating a growing overhang for the industry as policymakers look ahead to the 2026 midterms and beyond.
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