Deutsche Bank analysts are closely monitoring Amazon Prime’s “The Summer I Turned Pretty” and expressing concern about AI’s impact on Big Tech stocks. Themes of career challenges and trade war technology importance have emerged, with a focus on market bubble fears and overpromising tech CEOs. Data centers’ negative returns potential raises red flags.

AI hype is soaring, with S&P 500 companies mentioning AI over 3,300 times in earnings calls last quarter. Stock valuations, especially for tech giants like Nvidia, are high but healthier than during the dotcom era. Despite the hype, AI’s real risk may lie in data center economics, where revenue growth may not keep up with depreciation needs.

Deutsche Bank acknowledges the potential risks in AI infrastructure economics, especially concerning data center depreciation and revenue growth. While startups scale cloud consumption and consumer AI grows rapidly, concerns remain about the feasibility of reaching revenue targets. Historical parallels to past crises caution against overzealous spending without adequate returns.

The current hyperscalers’ capex buildout mirrors past crises in technology overspending, raising concerns about shareholder patience. While the tech giants may leverage debt to sustain growth, a reckoning may come if revenue fails to meet expectations. Corrections are necessary to prevent complacency and guard against negative returns in the AI market.

Read more at Yahoo Finance: markets are ‘more sober’ than the dotcom bubble, but with troubling data-center math