🧠 Technology & AI risk-off · 6–18 months
A what‑if from the future

What if AI-bubble narrative cracks, software-and-platform multiples reset?

A high-profile AI revenue disappointment punctures the bubble narrative, triggering a sharp multiple reset across AI-exposed software and platform names in a tech-led risk-off.

18%
our model probability
over 6–18 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 18% · 90% range 3–32% · 39 analogues · measured class tech_ai_bull 35% in 18 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — tech_ai_bull ≈0.2842/yr → 35% in 18 mo35%
Analyst prior · editorial share 52% of the class18%
Pooled · weight 87%18%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)18%
Published18%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 6–18 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. A high-profile AI revenue disappointment punctures the bubble narrative, triggering a sharp multiple reset across AI-exposed software and platform names in a tech-led risk-off. The trigger decomposes into signed root‑shocks — Volatility (VIX) ▲ · AI breakthrough ▼ · AI capex ▼ · Risk appetite ▼ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -1.6%
hist -1.59–+0.66%
2Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -1.1%
hist -0.74–-0.32%
3Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -1.0%
hist -0.82–+0.03%
4Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -1.0%
hist -1.01–+1.38%
5Micron MUon Hyperliquid 📈 chartEquity▼ -1.0%
hist -2.7–+0.54%
6Solana SOLon Hyperliquid 📈 chartCrypto▼ -0.9%
hist -20.01–-2.04%
7Volatility (VIX) VIXon Hyperliquid 📈 chartVol▲ +0.8%
hist -2.8–+1.59%
8MicroStrategy MSTRon Hyperliquid 📈 chartEquity▼ -0.9%
hist -3.73–+6.65%
9Hyperliquid (HYPE) HYPEon HyperliquidCrypto▼ -0.8%
model prior · unmeasured
10Ether ETHon Hyperliquid 📈 chartCrypto▼ -0.7%
hist -5.65–+1.91%
11AMD AMDon Hyperliquid 📈 chartEquity▼ -0.7%
hist -1.31–+0.13%
12TSMC TSMon Hyperliquid 📈 chartEquity▼ -0.7%
hist -1.34–+0.17%
13Marvell MRVLon Hyperliquid 📈 chartEquity▼ -0.7%
hist -0.79–+0.58%
14Tech sector XLK 📈 chartEquity▼ -0.6%
hist -0.42–-0.12%

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small cash hedge.
Also moves (not yet on Hyperliquid): Tech sector -0.6% · High-yield credit -0.2%

Historical precedent — what analogous events actually did

Across 39 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

TSMC slumps as DeepSeek roils AI-chip demand assumptions 2025-02 Megacap AI-capex doubt selloff 2024-07 Neuralink implants its first human brain-computer interface 2024-01 OpenAI releases GPT-4 2023-03 ChatGPT launches 2022-11 AlphaFold cracks the protein-folding problem 2020-11 AlphaGo defeats Lee Sedol 2016-03 Israel strikes Iran — Operation Rising Lion 2025-06 Micron's weak FQ2 guidance sparks a sharp December selloff 2024-12 ASML bookings-miss crash 2024-10 Nikkei 225 record single-day rebound 2024-08 VIX third-highest spike on record 2024-08 Trump 'Taiwan should pay for defense' chip selloff 2024-07 Nikkei 225 surpasses its 1989 bubble peak 2024-02 LK-99 room-temperature superconductor claim 2023-07 Nvidia AI-guidance blowout ignites the automation/AI capex wave 2023-05 Netflix subscriber-loss crash 2022-04 Meta 2022-02 Evergrande debt crisis - global selloff 2021-09 Didi removed from China app stores after NYSE IPO 2021-07 Wegovy 2021-06 First mRNA COVID-19 vaccine authorized 2020-12 COVID-19 fourth circuit breaker 2020-03 COVID-19 second Level-1 circuit breaker 2020-03 Worst Christmas Eve selloff on record 2018-12 He Jiankui announces CRISPR-edited babies 2018-11 Nvidia crypto-glut guidance crash 2018-11 February 2018 hot wage print triggers rate scare 2018-02 North Korea 'fire and fury' nuclear scare 2017-08 SpaceX lands an orbital rocket booster 2015-12 China-led global 'Black Monday' rout 2015-08 SEC approves Limit Up-Limit Down plan and revised market-wide circuit breakers 2012-05 US-downgrade Black Monday equity rout and VIX spike to 48 2011-08 Egyptian revolution / Mubarak uprising 2011-01 VIX record intraday high of 89.53 2008-10 2008 global rice crisis: Thai benchmark tops $1,000/ton 2008-04 Shanghai Sneeze global selloff with then-record VIX spike 2007-02 Soviet August coup attempt against Gorbachev 1991-08 Cuban Missile Crisis 1962-10
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
SOL SOLSHORT-13.5% · 5d -6.7%96%21 0.62✓ matches cascade
QCOM QCOMSHORT-2.8% · 5d -2.1%68%37 0.25✓ matches cascade
Gold XAULONG+1.2% · 5d -0.2% ↺ fades64%37 0.24·
US dollar DXYSHORT-0.2% · 5d +0.1% ↺ fades60%38 0.16·
AVGO AVGOLONG+1.8% · 5d -1.6% ↺ fades59%34 0.15⚠ differs
AMD AMDSHORT-0.9% · 5d -0.8%60%38 0.14✓ matches cascade
MU MUSHORT-2.0% · 5d -1.2%58%38 0.12✓ matches cascade
INTC INTCSHORT-1.6% · 5d -0.8%57%38 0.12✓ matches cascade
Volatility VIXSHORT-3.1% · 5d +0.3% ↺ fades57%38 0.11⚠ differs
ETH ETHSHORT-5.0% · 5d -5.2%57%27 0.11✓ matches cascade
Bitcoin BTCLONG+2.4% · 5d -3.0% ↺ fades55%31 0.09⚠ differs
High-yield credit HYGLONG+0.1% · 5d -0.2% ↺ fades56%36 0.09⚠ differs
TSM TSMSHORT-0.9% · 5d -1.2%56%37 0.08✓ matches cascade
MSTR MSTRLONG+7.0% · 5d -0.1% ↺ fades52%37 0.03⚠ differs

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.