Crypto companies are raising billions again but at lower valuations than previous cycles. Kalshi seeks $40 billion while Blockchain.com targets an IPO at $4–6 billion, down from $14 billion in the last boom. Most digital asset treasury companies no longer command premiums, with only four of the 20 largest trading above their crypto holdings' value.
AI capital expenditure is projected to reach 9% of GDP, with hyperscaler capex hitting $800B in 2026 and growing to $1.4T by 2028, driving half of S&P 500 earnings growth. Market gains are concentrated in AI stocks, creating a K-shaped market where equal-weighted indices lag while cap-weighted indices benefit from AI concentration.
U.K.-listed companies are attracting a surge of foreign takeover bids due to persistently low valuations compared to global peers. Public M&A deal values topped £75 billion through Q3, with overseas investors involved in 72% of transaction volume and hostile offers quadrupling this year. International capital dominates the largest deals, drawn by what analysts call a prolonged valuation gap in Britain's fastest-growing G7 economy.
A trader discusses inflated valuations in semiconductor and related sectors, noting that experts are justifying prices by looking at distant future earnings (FY30-FY35) rather than near-term forecasts. The post attributes the high valuations to institutional money chasing these sectors and suggests the valuations are unsustainable, advocating a momentum-based trading approach instead.