This outlook is as short-sighted as the 2000 fiber optic bust. Critics then thought overcapacity meant the end, yet that infrastructure eventually created the modern internet. Capital does not walk away from a fundamental shift just because of one market correction. While specific companies may fail, the long-term value of the technology ensures that investment will continue far beyond a five-year window.
How much capital was wiped out for it to be cheap after the bust? Someone is going to eat the exuberance loss in the near term, even if there is long term value.
But fiber optic created in 2000 is still very usable in 2026. AI hardware purchases in 2026 is going to out of date very quickly by comparison.