The $1 Trillion Tech Sell-Off: Panic or the Best Entry of the Year?

**Kyle Reidhead** (0:00)
Is it losing demand, or is it just, there's still more and more demand over here for the frontier models? There's just like, we're taking some of that, because there's too much demand over here, we're taking some of the things, putting it over here to make it more efficient. But we're still maxing out on the demand of entropic and AI in the frontier models.

**LGD Set** (0:16)
What's up, everybody, it's LGD Set here, and welcome to Milk Road AI, the twice weekly AI show that is not getting suckered into buying software stocks, just because they're finally showing signs of life. Today is June 3rd, 2026, recording on June 2nd. This week, Google announced yet another $80 billion in capex, as it becomes clear that no matter what the market does, these companies are not done building. But does it mean to go long on Google, or is there a different play at hand? We'll also talk about Corning as the dominant hand on the fiber bottleneck, SaaS and its potential comeback from the dead, and then get a glimpse of what the guys are actually buying this month. And a quick reminder, these guys make several trades a week, and Melvin is already up 60% since March. So you can see what they're doing in real time by getting into Milk Road Pro. It's literally just a dollar to test it out. If you don't like it, that's fine. You can cancel anytime. Today's episode is brought to you by Nexo, earn interest, borrow and trade crypto. Guys, we're back. We got a big pullback today. I'm going to blame you guys first and foremost for not alerting me to the pullback and or for selling everything, which some of you did, OK, before we started recording. So we'll get to that in a little bit. But I want some hot takes on the market to kick us off before we get to the big kahuna in SpaceX a little later in the episode. Kyle, how are you feeling right now? What's your take on the market?

**Kyle Reidhead** (1:29)
Well, I think the good thing is that oil is down below 90 So that's looking good. No one seems to be talking about oil at the moment. But if we all remember, that was the big reason why we were kind of struggling or having some issues in the first place. And down to 88 bucks at the moment, down 3.3%, so that's good. Still don't know what the heck is going to go on with this war here.
Every day it changes up and down. So honestly, I don't really know what the market cares on that anymore. But that still does matter. We got to get that figured out. So in the interim here, I think we're going through a bit of a pullback, and I think that'll probably continue for a little bit in the short term. But I think ultimately the bull market remains intact.
I think we continue to use more tokens than we did yesterday, every single day, which means entropic revenues and open AI revenues go up, which means we continue on with the AI infrastructure build out. So the one thing I think to keep in mind right now, and we've sort of seen it come to light over the last few weeks, is for the last year, every CEO was like, hey, we need to spend more on tokens, right? It's just like more, more, more, more, more. And now I think all of a sudden people are going, I don't know if these tokens that we've been spending on actually has an ROI to it. And so now they're starting to think, well, we need to be more efficient with our tokens, which could be an issue for the entropics in the open AI of the world. However, I still feel like even if we get more efficient with spending tokens, we'll end up spending more tokens because the ROI will be there, right? That's my thesis anyway. So I don't think we've reached some sort of bottleneck or some sort of top in terms of token usage or any of that yet. So I think the bull market continues. But as usual, we'll have these ups and downs. And maybe, maybe it's just sell in May and walk away. Maybe that's what's going on right now. We're just going to have a little bit of a boring summer now that we've entered June.
Probably not because SpaceX is going to IPO at the end of this week and that's going to cause mayhem on the market. But maybe that's what we're entering right now.

**LGD Set** (3:21)
Everybody wants to watch the World Cup, man. Nobody wants to watch their stocks during the World Cup, which I also know.