The bears have a warning for investors: the the AI bubble may be close to bursting.

That fear was top of mind last week as the AI trade trade stumbled and then plunged on Friday, with fears about spending and demand hammering away at the optimism that’s propped up the bull market for the last four years.

The Nasdaq 100 ended October with its worst monthly loss since March 2025, and is now teetering on the edge of an official correction, with the tech-heavy index down 9% from its early-October high.

Investors are navigating a confluence of worries that include:

• Fears of too much and too little spending. Investors have long worried that hyperscalers are spending too much on AI at a time when the return…