Next round of artificial intelligence competition" where is the tipping point? Analyst: It depends on who can reduce capital expenditure the fastest!

Former Chief Market Strategist of JPMorgan, Marko Kolanovic, stated that the investment boom in artificial intelligence that has driven the tech sector and overall market up is about to shift. The analyst wrote on X platform on Monday, "The next round of AI competition will be about which company can most quickly reduce promised AI capital expenditures." Kolanovic made this point following a report from investment firm TD Cowen, which showed that Microsoft Corporation (MSFT.US) has cancelled lease agreements with at least two private data center operators. On Monday, Microsoft Corporation's stock price dropped by 1%. Market concerns about AI investment costs, demand, and computing power have been ongoing, including for the S&P 500, Vanguard S&P 500 Index Fund, Nasdaq Composite Index, and Dow Jones Industrial Average. In late January, the emergence of the Chinese startup DeepSeek posed a competitive challenge to the chatbot Siasun Robot & Automation Chat GPT developed by OpenAI and supported by Microsoft Corporation, causing a global storm and triggering stock market sell-offs. Bank of America Corp strategist Michael Hartnett stated after the late January sell-off, "The emergence of DeepSeek signals that the return on AI capital expenditure expectations has reached its peak." Hartnett, who coined the term "the magnificent seven," said over the weekend that with the weakening leadership of tech stocks in the market, this group has now become the "lame magnificent seven." In a statement, Microsoft Corporation said that its infrastructure spending plan of over $80 billion for this fiscal year continues to progress steadily to meet customer demands. Investors looking to invest in the AI and Siasun Robot & Automation sectors can consider the following exchange-traded funds (ETFs): AI & Technology ETF (AIQ.US), Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ.US), First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT.US), iShares Exponential Technologies ETF (XT.US), and Roundhill Generative AI & Technology ETF (CHAT.US). Additionally, they can also follow funds that track the "magnificent seven": Roundhill Magnificent Seven ETF (MAGS.US), Daily 2X Long Magnificent Seven ETF (MAGX.US), and Direxion Daily Magnificent 7 Bear 1X Shares (QQQD.US).