Markets continue to behave as though artificial intelligence can absorb almost any macroeconomic shock.

Equity indices remain elevated. Semiconductor stocks continue making new highs. Hyperscaler earnings remain extraordinarily strong. Credit spreads remain relatively contained. Volatility, while higher than earlier in the year, still appears subdued relative to the scale of structural change now unfolding beneath the surface.

But increasingly, the underlying system is changing. The AI boom is no longer behaving like a traditional software cycle. It is evolving ...