The original headline is: "AI capex cycle likely to end with market pushback, not spending cuts: Jefferies"

Short summary

Jefferies analysis suggests the current AI capex boom will end when investors grow impatient for returns, not when tech companies cut spending. Capital is actively shifting to North Asia—with Korean and Taiwanese markets outperforming significantly—while US hyperscalers underperform despite increased debt financing. If expected investment returns fail to materialize soon, substantial capital destruction could follow.

• •Investor impatience for AI returns will end the capex boom, not spending cuts
• •Capital flowing to North Asia; US hyperscalers underperforming with debt concerns
• •Risk of significant capital destruction if returns disappoint

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