Answer: The companies selling the equipment. ✅

When a boom is in full swing, companies invest heavily in expanding capacity, creating a surge in demand for the businesses supplying the equipment. But when that spending slows, those suppliers often see orders disappear almost overnight. The companies making the investment may remain profitable by cutting capital expenditure, while the “picks and shovels” providers feel the downturn first. That’s why Nick argues AI chipmakers and infrastructure providers could be more vulnerable than the hyperscalers if AI spending cools.