This is not an AI demand breakdown—at least not yet. It’s a macro-driven valuation reset, with AI taking the biggest hit. Rising oil is reviving inflation fears, Treasury yields are climbing, and markets are repricing “higher for longer”—possibly even another hike. That compresses multiples across equities, but the most crowded, expensive winners get deleveraged first. Neoclouds also carry heavy GPU, data-center, power and financing costs, while memory and optical names had already priced in tight HBM, DRAM, NAND, 1.6T and OCS supply. The key tell is that demand news remains strong. NVIDIA just reported $96.2B in quarterly revenue, up 106% YoY, while Anthropic reportedly signed a $35B compute deal with Lambda. Yet AI infrastructure stocks kept falling. The market isn’t questioning whether AI demand exists. It’s questioning whether massive capex can cover interest, depreciation, power and lease costs—and still produce cash flow. For now: macro is crushing multiples; AI is amplifying the downside. It only becomes an AI fundamentals problem if oil and yields stabilize, the sector still can’t rebound, and capex cuts, order delays and earnings downgrades begin to appear.