0843 GMT - A slowdown in the development of artificial-intelligence models brings credit risk into the AI market narrative, Swissquote's Ipek Ozkardeskaya writes. Long-term financial commitments for data-center capacity and power could come under strain if the demand for such infrastructure isn't as high as anticipated, the analyst says. "If the AI race slows materially, the key question becomes: who pays for all that infrastructure?" Ozkardeskaya writes. "The leases, debt and power commitments remain even if expected compute demand and revenue growth slow." AI's central role in driving stocks higher and boosting productivity leaves markets vulnerable to any downturn in sentiment, Ozkardeskaya adds. Nasdaq futures fall 1.65%.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.