AI free pass officially expired! This week’s earnings reports will lay it bare!

The AI market is completely changing: from trading stories and expectations, it’s now about real profits only.
Global tech giants are wildly throwing money at scaling compute power—capital expenditures are surging—but the pace of AI monetization can’t keep up with the rate of spending.
The market has already voted with its feet:
The chip sector is plunging, valuations keep compressing; even if performance is great, it won’t rise—if growth fails to meet expectations, valuations get cut immediately.
Korean stocks are an even clearer example:
Late-stage AI hype plus retail investors using high leverage—large numbers of accounts were liquidated, wiping them out at zero, and the latecomers at the top were perfectly positioned to become the buyers.
This week is the critical turning point
Google and Tesla will release their earnings reports first.
No more hyped stocks, no more “theme” logic
Only this matters: can compute power make money, and can AI translate into profitable execution.