On Bubblish AI, Fiscally Feckless France & Weaker Earnings Estimate Revisions

If AI is a bubble, how vulnerable are investors? Can it even be considered a bubble, detached from fundamentals, with demand for compute growing like gangbusters? Demand so strong doesn’t mean highly leveraged players can’t be at risk, and their investors exposed, if returns take longer than expected to materialize or fall short of infrastructure build-out costs. Melissa doesn’t think valuations have detached from fundamentals, but she does see them becoming increasingly “bubblish.” … Also: William discusses how France’s ailing government bond market has weakened the euro—the last thing the ECB wanted. … And: Joe shares takeaways from his NERI index tracking the direction of analysts’ estimate changes for S&P 500 companies.