After AI trade liquidation, Ackman backs cloud giants' growth potential: Wall Street overestimates AI infrastructure costs, underestimates AI profit curve.

As investors reassess the possibility that AI-related infrastructure investments may fail to recover their full costs and the AI-driven economic growth expectations, the Nasdaq 100 index, known as the "global tech stock bellwether," saw its total market capitalization evaporate by more than $2 trillion last month. Amid the global tech stock selloff, the latest shareholder letter from Pershing Square Inc. (PS.US), founded and personally helmed by billionaire and hedge fund legend Bill Ackman, shows that Wall Street hedge funds appear to be overly focused on the rising costs of building AI computing power infrastructure and the associated AI financing costs, significantly underestimating the long-term growth potential of the large technology companies that are investing heavily in artificial intelligence.