Investors wary of potential AI spending slowdown

Investors are expressing nervousness over the AI market rally after industry leaders called for slower development. Tech giants are expected to spend nearly 800 billion dollars on AI data centers this year.

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A person visits the World Artificial Intelligence Conference in Shanghai, China July 26, 2025.  REUTERS/Go Nakamura

Investors are showing nervousness over the stock market's AI-led rally as industry leaders call for reining in development. The S&P 500 has more than double since October 2022 on heavy data center spending expected to hit nearly $800 billion in 2026. Wall Street is watching for cancelled orders that could disrupt valuations.

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