AI stocks keep beating expectations, but investors are starting to ask the harder question: is this growth... actually worth it?

Let’s break it down:

Microsoft, Alphabet, and AMD just dropped another round of solid earnings. AI infrastructure is booming, enterprise demand is steady, and every call still leads with language models and inference tools.

But here’s what’s changed: for the first time in this cycle, analysts are questioning if we’re paying too much for AI potential. Nvidia trades at nearly 45× forward earnings. AMD is close behind. Meta’s Reality Labs just posted another billion‑dollar quarterly loss, and investors cheered.

The belief in AI is so strong, it’s starting to disconnect from fundamentals. And that’s where things get risky.

What we’re seeing is classic bull cycle behavior: great stories, real tech, rising multiples. But there’s a shift happening underneath. Cash flow is fine, margins are healthy, yet traders are beginning to look sideways at the price tags.

That doesn’t mean a crash is coming. But it does mean this rally might need more than buzzwords next quarter.

Pay close attention to enterprise spending trends next week. If companies start trimming AI budgets, even slightly, Wall Street’s mood could turn fast.

Also: look out for August labor data. If hiring slows, it could pressure tech multiples even if the earnings stay solid.

This isn’t 2021. The tech is better. The money is real. But the prices? They might be floating a little too high above ground.

Let’s see what happens when the next wave of guidance hits.