Big Tech margin collapse: AI consumes profits and alerts investors

The 36% profit drop at Chinese short-video giant Kuaishou is a symptom of a global transition where Artificial Intelligence has shifted from a competitive advantage to a mandatory, predatory operating expense. As tech companies face forced maturation, heavy Capex for data processing and recommendation algorithms is eroding balance sheets. This trend, mirrored by Samsung's 15% price hike in the chip sector, is compressing margins across the digital value chain. In Brazil, a 2.23% rise in the commercial dollar over the last 7 days and a 4.44% annual inflation rate are increasing costs for local firms dependent on global infrastructure. This scenario underscores the risks of growth-at-all-costs strategies, as investors prioritize companies with robust cash flow and fiscal discipline over those burning cash to maintain relevance. We expect high volatility in tech stocks over the next 30 days, with a market bifurcation likely within 90 days as 'zombie tech' firms lose value and companies eventually pass higher infrastructure costs to consumers.