44% of every dollar companies spend on AI goes directly to fixing bugs that the AI itself created.
A report from Entelligence AI across 2,444 companies shows that for every $1 spent on AI tokens, $0.44 goes to bug fixes, $0.27 to rewriting AI-generated code, and $0.11 disappears into review and merge delays. Companies spending $100,000 on AI tokens and only $18,000 worth is reaching production. The other $82,000 is overhead generated by the tool itself. Lightrun's 2026 report found that 43% of all AI-generated code still requires manual debugging in production even after passing every quality test. Not a single engineering leader surveyed said they were fully confident AI code would behave correctly once deployed. Wall Street is pricing AI as a productivity tool and the data says 82% of the spend never reaches the actual product. SOURCE: @Aiswarya_Sankar Sam Boboev
This market is all about tech. That goes for US as well as global markets.
Source: UBS, TME
Semi-conductors are going vertical. The SOX index is up 18% from the “momentum” washout lows just a few sessions ago.
The bounce off the 21-day moving average has been nearly perfect, although the current upside panic is starting to look increasingly extreme. SOX monthly RSI is now at 87, the highest level since the dot-com bubble. Source: TME
Wondering why memory chips stocks are exploding? A quarter of the BOM (Bill of Materials) of the hyperscalers is going to memory, up from 7%.
Good thing hyperscalers are printing cash... Source: zerohedge
GOOGLE JUST SHOWED HOW INSANE AI DEMAND HAS GOTTEN
Monthly tokens processed across Google surfaces: May 2024: 9.7T May 2025: ~480T May 2026: 3.2Q+ That is 7x Y/Y growth. Source: Wall St Engine
SocGen notes that Tech has one of the lowest PEGs..
Source. SocGen
Semiconductor stocks now represent a RECORD 13% of the total US stock market cap.
This share has more than QUADRUPLED over the last 4 years. The percentage is nearly TWICE as high as during the 2000 Dot-Com Bubble peak. Meanwhile, the Semiconductor ETFs, $SOXX, and $SMH are up 33% and 24% year-to-date, respectively. Source: Global Markets Investor, Topdown Charts, LSEG
This chart says it all: US tech valuations have compressed from 40x to 20x Forward P/E in weeks.
Tech valuations are now LOWER than they were when ChatGPT was announced. As the Iran War drives markets lower, AI is only getting bigger. A buying opportunity? Source: Apollo, The Kobeissi Letter
