New York Times (November 18)
UBS expects “the global A.I. capex tally” will “hit $423 billion this year…and reach $1.3 trillion by 2030.” But Big Tech’s “debt-fueled spending spree” is raising concern. “Not long ago, huge investment pledges pushed the A.I. rally to new heights. But the need to borrow so many billions is beginning to rattle stock and bond investors.” For example, “shares in Oracle, and some of if its bonds, have sold off sharply in the past month in a sign of investors’ growing concerns about its long-term A.I. financing plan.”
Tags: $1.3 trillion, $423 billion, 2030, A.I., Big tech, Bond, Borrow, CAPEX, Debt-fueled, Financing, Investors, Oracle, Shares, Spending spree, Stock, UBS
Investor’s Business Daily (July 19)
“Magnificent Seven stocks dumped more than $1.3 trillion in market value in a week…. Former do-no-wrong AI company Nvidia (NVDA) is the No. 1 culprit” behind the “epic implosion.” Shares in Nvidia “have plunged more than 11% from July 10. That effectively wiped out more than $417.3 billion in shareholders’ wealth — or roughly a third — of the Mag 7’s dollar-value loss in that time.”
Tags: $1.3 trillion, AI, Culprit, Epic implosion, Magnificent Seven, Market value, Nvidia, Plunged, Shareholders, Stocks, Wealth
