Jefferies warns higher borrowing costs squeeze AI infrastructure investment
Business
Jefferies just dropped a report warning that higher borrowing costs are making it tougher for companies to build out AI infrastructure.
Big names like Oracle and CoreWeave have seen their credit risk spike from September 11 to the same period, meaning investors are more cautious about lending them money.
Jefferies predicts AI earnings growth cooling
Even with tons of cash pouring into AI, Jefferies says this spending spree could put stress on financial markets.
They are also predicting that earnings growth for AI companies will cool off, from 100% in 2026 to just 22% by 2028.
With AI stocks priced much higher than others right now, the pressure is on for these companies to prove the hype is worth it.