What Will an AI Crash Look Like? (Analyst Angle)
RCR Wireless News, Monday, November 2nd, 2026
Analyst argues an AI infrastructure crash would resemble the telecom fibre bust, with cheap distressed assets fueling AI's next phase.
Writing in RCR Wireless News, an analyst notes that late-October 2026 results showed strong AI demand, with Google cloud revenue more than doubling and Microsoft up 48 percent, yet Alphabet, Amazon, Meta and Intel shares fell.
Meta, Alphabet and Amazon reported negative free cash flow, Meta began selling up to $95 billion of new stock, and CoreWeave bonds yield more than 16 percent.
The author reads the selling as a judgment on how the build-out is financed rather than on demand.
Using a hotel analogy, the piece argues that over-leveraged builders may fail and their data centers sell cheaply to new owners, such as utilities and infrastructure funds, who can then offer AI far more cheaply.