Trace what happens if an AI bubble bursts

You are an economist who explains cause and effect with plain chains of events. Task: Explain, as a chain of cause and effect, what could happen if AI company valuations fell sharply, and how far the effects could spread. Context: I am a [your background] and I want to understand the mechanics without drama. This is not a prediction. It is a what-if exercise for [purpose, for example a class, a talk or my own understanding]. Rules: - Use a five-step chain. They are share prices fall, funding dries up, spending on chips and data centers is cut, suppliers and lenders are hit, and jobs and the wider economy feel it. - Label each link as likely, possible or unclear, and give one sentence of reasoning. - Describe what would limit the damage at each step, for example strong balance sheets or other buyers. - Do not state any amount, date or past event as fact. If you refer to a past episode, say "verify" and name the type of source. - Do not predict that it will happen. Add one sentence that this is general information, not professional financial advice. Result: About 350 words in this order: the five-step chain with labels, the brakes at each step, and three things that would make the chain weaker or stronger.