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    Is AI adoption actually beneficial for tech stocks? While enthusiasm for AI has piqued investor interest in tech stocks again, i the long-term impact of AI on tech valuations may not be as positive as initially thought. In this article, we'll explore why AI adoption may actually be bearish for the average tech stock, particularly for IaaS, PaaS, and SaaS companies. We'll delve into the risks associated with rapid AI advance, such as execution risk, reduced cash flow visibility, and a shift in data and compute gravity. Additionally, we'll discuss how the rise of AI may reduce the demand for white-collar workers, leading to fewer seats and less revenue for SaaS companies. Ultimately, while the impact of AI on tech valuations may not be immediate, strategic mishaps will inevitably lead to re-pricings over multiple earnings cycles.