AI funding fears puncture rally in Asia’s high-flying picks-and-shovels stocks
Growing concern over whether hyperscalers, neo-cloud operators can keep financing the infrastructure needed to deploy them
Concerns are growing over whether hyperscalers and neo-cloud providers can continue financing the infrastructure required to support the deployment of artificial intelligence technology. This has exposed a new vulnerability in Asia's artificial intelligence trade, as mounting financing costs could potentially choke off the spending necessary to sustain the ongoing boom and threaten earnings across the supply chain.
This pressure has intensified as oil prices surged to over $110 per barrel for the first time since May, fueling inflation concerns, and investors have turned their attention to the trillions of dollars being borrowed to build AI infrastructure.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- AI trade reversal pierces Asia’s star picks-and-shovels stocks straitstimes.com
