AI Bubble Burst: Confirmed By Alphabet, Caterpillar, ServiceNow, And Amazon

Alphabet and Microsoft both missed AI capex expectations for Q3, according to a Seeking Alpha commentary arguing the miss marks the end of the AI infrastructure boom. The piece, titled "AI Bubble Burst," also names Caterpillar, ServiceNow, and Amazon as confirming evidence for the thesis.

The core claim is narrow and specific: Q3 capital spending at two of the largest AI infrastructure buyers came in below what the market anticipated. The author reads that shortfall as a sign that demand for AI buildout is cooling rather than accelerating. Alphabet and Microsoft are the named spenders; the headline groups Amazon and ServiceNow alongside them as part of the same earnings-season pattern.

Interpretation, not confirmed fact: if hyperscaler capex is the revenue source for AI infrastructure suppliers, a spending miss at two major buyers would pressure those suppliers' forward expectations. The article asserts a bubble burst, but the supplied evidence is a single quarter's capex shortfall at two companies. One quarter below consensus is a data point, not yet a trend.

The author discloses no positions in any company mentioned.