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Chris Wood’s big warning: The specific risk that will finally trigger the end of AI trade

Jefferies strategist Chris Wood has warned that the artificial intelligence (AI) boom may come to an end not due to a surplus of chips but because investors will realize that hyperscalers are unable to achieve sufficient returns on their substantial investments in AI. This concern over capital misallocation poses a significant risk to the AI trade, suggesting that the market may face a prolonged pause. Understanding these dynamics is crucial for grasping the future of technology investments.