AI Bubble Warning: Global Market Selloff, Credit Risks, and the Next Phase of Investing
📘 Part I. The “AI Bubble Warning” That Shook Global Markets — The Heat Is Starting to Fade In early November 2025, global stock markets turned sharply lower. Technology shares led the sell-off, with the Nasdaq Composite down about –3.8% and the Philadelphia Semiconductor Index off –4.5%. Analysts said the pullback signaled that the AI-themed rally that had powered markets since 2023 may have reached a tipping point. This section unpacks why the term “AI bubble” began circulating, what warning signs were flashing, and the structural forces that triggered the current correction. --- 1️⃣ Signs of Excess — When Expectations Overtake Reality The defining feature of this rally was speed — expectations outran fundamentals. Over the past two years, stocks linked to AI—semiconductors, servers, and data-center infrastructure—soared. NVIDIA surged roughly ten-fold from 2022 levels, AMD rose five-fold, and Supermicro skyrocketed fifteen-fold. But profits didn’t keep up. NVIDIA’s Q3 2...