AI Infrastructure Stocks Plunge as Investors Question ROI Despite Booming Demand
Summary
AI infrastructure giants Broadcom, Oracle, and CoreWeave stocks continue plummeting as investors panic over massive spending and questionable returns, with Oracle's debt soaring to dangerous 500% levels despite Broadcom projecting doubled AI chip sales to $8.2 billion.
Key Points
- AI infrastructure stocks Broadcom, Oracle, and CoreWeave continue declining on Monday, extending last week's sharp selloffs as investors grow concerned about return on investment despite strong AI demand
- Oracle faces financing scrutiny with debt-to-equity ratio reaching 500% and $248 billion in lease commitments for data centers, far exceeding cloud computing peers like Amazon and Microsoft
- Broadcom expects AI chip sales to double to $8.2 billion this quarter but warns of lower gross margins due to heavy spending on server rack components