Full Signal AI is KILLING Big Tech stocks! | Luke Kawa
Mar 9, 2026
Luke Kawa, markets editor at Sherwood Media and veteran financial analyst, unpacks the rotation out of Big Tech and why Magnificent Seven cash flows are sliding. He digs into NVIDIA’s ROI reality, hyperscaler spending risks, AI’s imprint on the rates market, and stress in private credit. Short, sharp takes on valuation shifts and cautious optimism about AI-driven spending.
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Market Searching For Safety In Memory Stocks
- Markets are searching for safety as investors debate AI capital expenditure returns.
- Luke Kawa points to memory stocks like SanDisk rallying as perceived safer plays with improving P/FCF despite broader CapEx uncertainty.
Mag7 Forward Cash Flows Are Rolling Over
- Forward free cash flow estimates for the Magnificent Seven have been falling, signaling diminished cash generation expectations.
- Kawa ties this to sustained hyperscaler CapEx that keeps depressing customer cash flows despite rising compute revenue.
NVIDIA Valuation Reflects Customer ROI Risk
- NVIDIA is being valued as a play on its customers' success rather than a pure upstream chip vendor.
- Kawa warns revenues can rise without improving cash flows when customers keep dramatically increasing CapEx.