The market trades near all-time highs with extreme valuations largely driven by passive investing. Key AI companies like Oracle and Amazon report negative free cash flow despite positive earnings, raising concerns about sustainability. Emerging AI firms such as OpenAI and Anthropic face profitability challenges and growing competition from cheaper alternatives and Meta Platforms. Investors are urged to question market fundamentals amid these risks.
The surge in AI demand is causing a sharp rise in memory prices, with DRAM and high-bandwidth memory costs soaring up to 90% in early 2026. Nvidia plans to increase server prices by over 15% due to rising memory costs, a trend also seen in consumer t...
Hyperscale cloud companies like Amazon, Alphabet, Microsoft, and Meta are projected to spend $4.1 trillion on AI-related infrastructure from 2026 to 2028, more than triple the previous six years. UBS estimates these firms will reinvest nearly 100% of...
Michael Burry has issued a warning that the rapid growth in AI data centers is fueled by complex financial arrangements like circular financing and off-balance-sheet vehicles, which obscure true leverage and risk, similar to the 2008 financial crisis...
Nvidia and Oracle stocks have continued to rally even as credit default swap spreads, which indicate rising credit risk, have sharply widened. This divergence is unusual since widening credit spreads typically signal higher risk and lead to falling s...
Oracle shares have dropped 27.1% year to date due to massive capital expenditures for AI infrastructure and worries about customer concentration. The company is transforming into a hyperscale AI cloud operator, with cloud sales now over half of reven...
