Saxo Bank: AI Trading Enters De-bubbling Phase, Investment Should Shift to Supply Chain Resilience

Glonghui, February 26th｜Charu Chanana, Chief Market Strategist at Saxo Bank, pointed out in a report that despite Nvidia's strong performance, volatility in AI-related trades will persist. The AI narrative has matured, and investors now need to see evidence of profitability and spending discipline. The market is increasingly focused on the quality of demand, its structure (training vs. inference), pricing power, and the speed at which "easy money" disappears as competition intensifies. Investors should remain cautious regarding AI application layer companies, as their profitability timelines are uncertain and competition is fierce. This makes them the most volatile segment within AI trades. In contrast, AI infrastructure suppliers along the supply chain—from electricity and cooling to network connectivity—may prove more resilient.