Elon Musk warned that debt markets are nearly closed for companies building AI data centers without substantial revenue outside AI, predicting many half-built facilities may be stranded. SpaceX secured $40 billion in GPU debt financing due to its strong revenue streams, but others like Applied Digital face risks with heavy debt and limited revenue diversity. Suppliers such as Coherent, Arista, and Marvell may still benefit as AI infrastructure demand consolidates around financially stable players. The situation will become clearer with upcoming earnings reports and debt deals, indicating whether Musk's concerns about funding constraints are accurate.
Coherent trades at USD 209.88, up 0.28% as of Oct 26, 2026 18:02 WIB on Pluang, showing resilience amid concerns about AI data center financing. Applied Digital, facing debt challenges, is down 3.01% at USD 17.70 with a market cap of $5.52B. Arista Networks holds steady at USD 172.20, down just 0.10%, reflecting cautious investor sentiment in the AI infrastructure sector.
