New York, New York
— October 12, 2025

The concerns around an AI bubble are getting louder — and honestly, you could see it going either way. The rally has been incredible, but that also makes it worth stepping back and asking a few smart questions.

At Wall Street Game Notes, we’re focused on two in particular that can help investors think through what’s happening.

1️⃣ Infrastructure vs. Demand — Where’s the Balance?
Everyone knows that AI infrastructure spending is through the roof. The key question is: how’s demand and monetization?

From what we’re seeing, demand remains strong. Every new data center that comes online is going into near-immediate use. There’s also a steady wave of new AI-driven products and applications launching across industries — from chips to devices to consumer apps.

Here’s a way to think about it: if AI is like the invention of the car, then data centers are the gas stations. And right now, every new gas station that opens has a line down the block. That kind of demand can easily justify more investment — for now.

But there are major challenges, too.

• 💰 Price: Building and running data centers is incredibly expensive, which raises the stakes if demand ever slows.
• ⚡ Power: They’re energy-hungry to the point that projects like Stargate are building natural gas plants next to them.
• ⏳ Depreciation: GPUs and servers age quickly — unlike railroads or cable lines from past infrastructure booms.

2️⃣ What Could Burst the AI Bubble?
There are a few things we’re watching closely that could flip the narrative fast:

• Economic slowdown: Wall Street has given Big Tech a green light on AI spending because they’re flush with cash. But if an economic downturn hits earnings, AI investments could quickly get re-evaluated.
• Tech leapfrogging: A breakthrough that reduces the need for massive infrastructure could expose overspending and crush valuations.
• Over-concentration: A handful of companies dominate AI today. If something hits one of them — operationally or reputationally — it could trigger a wider selloff.
• Legal pressure: Copyright lawsuits and data-use disputes are bubbling up. They may not kill AI, but they could hit margins and sentiment.

Our take: zoom out. Think through multiple scenarios. Position yourself for the ones you believe are most likely — and don’t get caught chasing hype without understanding the risks.

Be good.