Concerns about highly leveraged artificial-intelligence data-center developers' credit have triggered a selloff, but the risks remain largely company specific, says Julius Baer's Enrico Chinello.

Neoclouds are more exposed to financing pressures than hyperscalers, though tighter credit conditions are more likely to raise borrowing costs for future debt issuance than disrupt current operations, he says.

Recent results from TSMC point to resilient demand, with revenue exceeding guidance, he adds. Stronger processor rental rates and rapid AI-lab sales growth further support the outlook.

Investors will be looking to the coming earnings season for more clarity, but Julius Baer remains constructive on cloud computing and AI, he adds.