By Bram Berkowitz
Publication Date: 2025-11-18 09:18:00
AI has fueled the stock market over the past few years.
The blistering artificial intelligence (AI) trade that has fueled the bull market for years recently showed signs of fatigue, as investors began to question high valuations and other factors affecting the broader sector. Few companies are more impactful on AI than Microsoft (MSFT 0.53%), which appears to be forging deals and alliances with nearly every major company in the space, from Nvidia to CoreWeave.
Recently, Microsoft CEO Satya Nadella delivered some insights that may present at least a temporary roadblock for the sector. The insights suggest bad news for AI investors.
Image source: Getty Images.
Lack of capacity is becoming a problem
AI is fueled by large language models (LLMs), which are built on the foundation of enormous datasets that utilize trillions of words, or tokens. Whether it’s for training or computation, running LLMs requires data centers with massive amounts of power that naturally consume a significant…
