【AI stocks fall for a week and everyone calls it a burst bubble? First, look at who borrowed the money】
Li Lihua said he had originally planned to wait for $BTC to pull back before buying the dip. After talking with Sun Yuchen, he began turning his attention to the Nasdaq $QQQ and the AI supply chain. What worries him isn’t simply that “AI is going nowhere,” but the financing built up on optimistic expectations over the past few years: if revenue takes longer to materialize and funding tightens, the most aggressively expanding companies will feel the pressure first.
The market is indeed reassessing the shock. After Jensen Huang resigned, Nvidia fell about 13% in a week; the Nasdaq dropped 0.9% on Friday, but was still up about 2.3% for the week. Bitcoin fell below $69,000. Risk appetite is weak, but a few days of market moves alone aren’t enough to say the AI bubble has burst.
The real concern is the credit chain. AI cloud provider Nscale’s debt rose to $5.5 billion in the third quarter; the Federal Reserve has also noted that data center financing is increasingly flowing into private credit, structured credit, and project financing. As long as financing remains available, falling share prices may not immediately cut investment in computing capacity. But if funding costs rise and customer commitments weaken, orders and valuations could both come under pressure.
Li Lihua said he had originally planned to wait for $BTC to pull back before buying the dip. After talking with Sun Yuchen, he began turning his attention to the Nasdaq $QQQ and the AI supply chain. What worries him isn’t simply that “AI is going nowhere,” but the financing built up on optimistic expectations over the past few years: if revenue takes longer to materialize and funding tightens, the most aggressively expanding companies will feel the pressure first.
The market is indeed reassessing the shock. After Jensen Huang resigned, Nvidia fell about 13% in a week; the Nasdaq dropped 0.9% on Friday, but was still up about 2.3% for the week. Bitcoin fell below $69,000. Risk appetite is weak, but a few days of market moves alone aren’t enough to say the AI bubble has burst.
The real concern is the credit chain. AI cloud provider Nscale’s debt rose to $5.5 billion in the third quarter; the Federal Reserve has also noted that data center financing is increasingly flowing into private credit, structured credit, and project financing. As long as financing remains available, falling share prices may not immediately cut investment in computing capacity. But if funding costs rise and customer commitments weaken, orders and valuations could both come under pressure.