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On February 25, Wolfe Research issued a warning that investors might be overestimating the growth prospects of AI investments, despite ongoing market volatility. According to BlockBeats, recent trading activity has shown that news headlines alone can cause the S&P 500, Nasdaq 100, and Russell 2000 indices to drop by approximately 1% to 1.6%.

Wolfe Research analyst Chris Senyek highlighted that while hyperscale cloud providers are expected to exceed capital expenditure forecasts by 2025, there is uncertainty about maintaining this pace in 2026. Bottlenecks related to power, raw materials, and regulations could slow down large-scale AI infrastructure development in the latter half of 2026.

A slowdown in spending growth could benefit industries previously pressured by AI concerns but would significantly impact stocks heavily reliant on AI investments, such as those in the semiconductor and industrial sectors.