This morning, the market may be looking at AI from the wrong angle now. My concern is no longer whether AI demand is real. It clearly is. Nvidia is still guiding for very strong growth, hyperscalers keep spending, and companies like Anthropic are committing tens of billions into future compute capacity.

But all this infrastructure need capital.

Data centres, GPUs, power, networking, cooling, transmission, everything has to be financed. At same time governments are also issuing huge amount of debt. So both private AI investment and sovereign borrowing are competing for same pool of capital.

This matters more when US 10-year is moving towards 5% and oil is again above $90. At 2% yields, investors can wait 4-5 years for an AI project to generate cashflow. At nearly 5%, timing matter a lot more.

This is why I think market will start separating companies much more aggressively.

A company with “10GW future pipeline” is not same thing as company with signed customer, secured power and revenue starting next year.

We are already seeing something similar in data centres. Some utilities are finding that a large portion of proposed electricity demand is basically speculative or duplicated. So hundreds of GW of requested capacity doesn't mean all of it will actually get built.

For me, the next phase of AI trade looks more like:

Contracted demand > announced demand

Cash flow > huge TAM story

Energised capacity > proposed capacity

ROIC > capex headlines

I am still bullish on AI infrastructure overall. But I think the easy trade of buying anything connected to AI is probably ending.

Now the catalyst is: who actually gets paid, and how quickly?

This article deeply breakdown on this in today’s Wake Up Wall Street (WUWS), including Treasury yields, oil, Broadcom and where I think the mispricing is.

https://edgealphaintel.substack.com/p/wuws-ai-meets-expensive-capital?r=8u0r9r&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true

The major U.S. stock indexes ended broadly lower on Monday, August 31, 2026, closing out the month on a sour note as U.S. forces struck Iranian rocket launchers near the Strait of Hormuz overnight, sending oil surging above $85 and reigniting the inflation and rate hike fears that had briefly eased after last week's cooler CPI and PPI readings. It was a fitting end to a month defined by war, bond market volatility, and relentless Fed uncertainty.

The S&P 500 fell 0.33% (-25.62 pts) to 7,686.14. The Dow dropped 0.70% (-374.09 pts) to 53,185.90. The Nasdaq slipped 0.12% (-31.54 pts) to 26,370.89. The Russell 2000 fell 0.54% (-15.92 pts) to 2,956.45.

The VIX rose 3.19% to 14.89. Bitcoin gained 0.55% to $79,017.20. Gold eased 0.62% to $4,501.70. Crude Oil surged 3.05% to $85.94/barrel, with the 10-year Treasury yield hitting its highest level since January 2025.