Ed Yardeni Warns AI Slowdown Could Extend Boom

Alphabet lost twelve percent in a single day after its cash flow sank deeper into negative territory. Wall Street veteran Ed Yardeni says a cooling period might actually save the entire artificial intelligence boom. Tech giants are raising staggering sums of money to fund their massive infrastructure plans. Elon Musk secured forty billion dollars in debt financing for SpaceX. Meta announced plans to raise ninety-five billion dollars in equity. Microsoft pulled in twenty-five billion dollars through a fresh bond sale. Data centers are also hitting physical walls with severe electricity shortages and limited grid capacity. Political backlash is mounting against these massive new facilities. Yet Yardeni argues that these financial and physical limits are entirely healthy for the market. A slower buildout could prevent dangerous over-investment and lower inflation pressures on tech hardware. Major players like Amazon, Alphabet, Meta, Microsoft, and Oracle are still projected to spend nearly eight hundred billion dollars this year. That spending is expected to hit one trillion dollars annually between twenty twenty-seven and twenty thirty.