Japan’s government bond market delivered the first warning shot this week. Long-dated yields jumped abruptly, pushing borrowing costs to levels not seen in decades and signaling growing unease over the country’s fiscal outlook. Only afterward did equity markets and currencies fully react.

Alphabet’s stock surge this week was not about a single product launch or earnings beat. Instead, investors appear to be reassessing Google’s long-term position in artificial intelligence, pushing the company’s valuation above the $4 trillion mark and placing it among the most valuable corporations ever traded.

The AI trade is no longer moving as a single theme. As capital rotates into companies that control physical bottlenecks such as power, compute capacity, cooling, and automation, performance across AI-linked equities is diverging sharply.

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