AI Concentration and Rotation

AI trade being repriced but not rejected. SSGA notes market punishing heavy AI capex without clear FCF payoff, driving rotation from mega-cap tech to cyclicals. MSFT and AMZN earnings validated disciplined AI capex and monetization, while META/AAPL struggles highlight divergence. RSP nearing $100B AUM, outperforming SPY. Semis down, healthcare/financials up. New data: $1.688T AI contracts (bullish) but breadth deterioration suggests caution. Chip weakness persists from Korea. Insider sentiment dropping below normal adds caution. SPY holders should monitor sustainable broadening vs forced unwinding.