U.S. Treasury Warns AI Market Collapse Could Mirror Dot-Com Bubble; JP Morgan Sees Chip Dip as Buying Opportunity

According to Reuters, U.S. Treasury Department officials warned on July 7 that if the AI market fails to monetize, it could trigger financial shocks similar to the 2000 dot-com bubble collapse, with impacts spreading across data centers, semiconductor manufacturers, and utilities. However, JP Morgan countered that recent semiconductor stock declines present a buying opportunity, citing persistent global demand and production capacity constraints lasting through 2028.

Market direction hinges on this week's earnings guidance from major AI infrastructure companies—Penguin Solutions on July 7, TSMC on July 10, ASML on July 15, and TSMC's quarterly report on July 16—which will confirm whether big tech firms are actually deploying funds for AI infrastructure buildout.