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Markets have quietly priced in significant AI skepticism as median AI infrastructure valuations plummeted from 32 times forward earnings in April down to 22 times today. While memory stock multiples currently reflect severe distress, fundamental players like Micron Technology continue generating robust gross margins above 72 percent despite a split sentiment between Goldman Sachs Neutral ranking and Seeking Alpha Strong Buy rating. Fabless chipmakers also show valuation normalization even with minor earnings dips, keeping Nvidia firmly positioned as a Strong Buy across both major analysts. Moving forward, the key catalyst depends on hyperscalers proving that decelerating capital expenditures can directly convert into durable, visible free cash flow.
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