Thursday's AI selloff was positioning, not fundamentals. The positioning (MS Prime Brokerage / QDS): • HF net leverage −5% in one day, 5th largest drop since 2010, now bottom decile • L/S de-grossing since June: −10.7%, most in 10+ years • Levered ETFs sold $57B, the largest on record (2007) • Retail selling 2nd largest since 2016 • HFs now underweight AI vs market cap The fundamentals: • Google: 2027 capex to increase "significantly" • AWS +39% Y/Y rev, sold out of capacity • SK Hynix: DRAM/HBM "effectively sold out" through 2029 • Texas: all permitted data centers allowed to finish, covering 2027 and most of 2028 Forced sellers don't care about fundamentals. Eventually, fundamentals win.
Magoo PhDShare
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.