Is The AI Trade Over? | Jack & Max on Panic in AI Credit, SpaceX Earnings, and Semis

The discussion centered on whether the AI trade is genuinely breaking down or just moving through a painful reset. The hosts argued that the selloff in semiconductors, AI-linked stocks, and especially AI credit has been driven by a mix of slower-than-expected revenue growth from Anthropic, rising memory supply from China, and anxiety around how much debt the data-center buildout can support. They emphasized that the pessimism is showing up more clearly in credit markets than in equities, with CoreWeave bonds and other AI-linked financings under pressure.

A major reference point was SpaceX’s earnings call, which they interpreted as still bullish for compute demand. The hosts highlighted Elon Musk’s comments about adding 10 gigawatts online in 2027 and potentially 20 gigawatts of incremental power and cooling, arguing that if those numbers prove accurate, they would support semiconductors and AI infrastructure. At the same time, they warned that the market may be underestimating how much of the current AI buildout depends on financing, permitting, and physical constraints rather than just model demand.

They also pushed back on the idea that the whole AI trade is over. Their view was that Anthropic’s slower growth is concerning but not fatal, that some of the headline losses are accounting-driven, and that many investors are rotating out of crowded AI positions into defensives rather than fleeing the market entirely. The episode ended with a cautious but still constructive stance: the near-term trade may be shaky, but a true collapse is not their base case.