AI Capital Expenditure "Applying the Brakes" Turns into a Bullish Signal? Former Morgan Stanley Strategist: Market Rebound Requires Major Players to Signal "Stop Loss"

2026-02-13 23:01:25

Abstract generation in progress

Bloomberg News reports that former JPMorgan Global Research Chief Strategist and Co-Head Marco Colaneri said Thursday that artificial intelligence trading is experiencing a dramatic reversal—if a tech giant tightens AI infrastructure spending, shifting to profit and cash flow, the market could potentially rebound.

During this year’s tech-led sell-off, the software sector has been hit hardest. The market is pricing in the disruptive impact of AI, while also increasingly worried that the capital expenditure of mega-scale firms continues to rise, possibly reaching unsustainable levels. Meanwhile, a significant rotation of funds into value stocks is becoming one of the main market themes for 2026.

Colaneri posted on social platform X: “The irony is that for the market to rebound, a mega-scale firm or software company needs to step up and make a statement—stop AI investments (no longer purchase overpriced memory), and return to cash flow focus.”

Microsoft (MSFT.US), Google (GOOGL.US), Amazon (META.US), and Meta Platforms (META.US) have all announced AI investment plans this year, totaling up to $650 billion.

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