Rothschild & Co. analyst Alexander Haissl has downgraded Microsoft and Amazon from buy to neutral, citing concerns over the economic viability of generative AI investments. Haissl warns that the underlying economics of hyperscalers are weaker than previously assumed, with GPU deployments requiring six times more capital to produce comparable value to early cloud services. He criticizes the industry’s optimistic 'trust us' narrative about AI, stating that valuations are overly optimistic and do not reflect the increased capital intensity and lower pricing power. Microsoft’s price target has been reduced from $560 to $500, implying a 1% downside, while Amazon’s target remains at $250. Despite most analysts maintaining buy ratings, Haissl’s bearish stance marks a break from the majority consensus. The Nasdaq 100 has declined nearly 5.1% since late October, reflecting investor caution amid stretched AI valuations and concerns over asset depreciation and overbuilding risks in AI infrastructure.