On AI Revenues, China’s Oil Demand & MTM In Earnings

Whether the AI boom is a bubble that could burst if the hyperscalers are overbuilding datacenter infrastructure hinges on end-user demand for AI services. Melissa has devised a back-of-the-envelope way for investors to get a handle on whether two big AI providers that have contracted with the hyperscalers for compute capacity have promised the moon or will realize the revenue to honor those commitments. … Also: China’s falling demand for oil helped to contain oil prices during the war-induced supply shock, and William says it’s a trend that will outlast the war, benefiting the global economy. … And Joe says the accounting rule with Q1 effects that caused S&P 500 forward earnings to soar may not be a one-time thing.