“The revenues generated will be insufficient”: Wall Street caught up with the bill for the artificial intelligence boom
DECRYPTION - Tech giants are getting into ever more debt to finance colossal infrastructure. But the gap between the billions invested and the expected income is testing investor confidence.
Wall Street's big bet on AI is giving even the most seasoned investors a cold sweat. Last Friday, the Calpers pension fund for Californian civil servants indicated that it had reduced its exposure to the “Magnificent Seven”, the American tech giants who have been driving the artificial intelligence stock market boom for many months. “We replaced strong exposure to seven companies with exposure to several hundred companies,” explained its boss, Anton Orlich, in the Financial Times.
A few weeks ago, its contributors would undoubtedly have railed against such a movement, as the valuations of Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla were soaring. But the time for celebration is no longer over. Since their mid-October peaks, the seven giants have seen more than $1.55 trillion in cumulative market capitalization evaporate.
Machine-translated from French
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- Le Figaro25 Oct, 18:27
| Publisher Le Figaro (established tier) | +76 |
| Detailed summary | +2 |
| Total | 78 |
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