Investors can't stop believing
TL;DR
Data: FactSet; Chart: Matt Phillips/Axios Who cares about war, oil prices, interest rates or an AI bubble? Investors apparently do not — for now at least — sending stocks back to record highs. Why it matters: High stock prices are critical to keeping funds flowing to the AI buildout. A significant erosion of investors' confidence in stocks would be a big risk to the AI flywheel of financial flows, capital expenditures and industrial activity driving the U.
Nauti's Take
High valuations carry a practical advantage: while capital flows freely, funding rounds and compute budgets are easier to secure for small AI teams than in the years before. The risk is mistaking investor sentiment for product demand, since the two can move independently of each other.
Stress-test runway, cloud costs and hiring plans against a scenario where venture funding cools for several quarters, and keep at least one cost lever ready to pull.
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