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  • 3 months ago
Investor sentiment around AI infrastructure weakened as Broadcom, Oracle, and CoreWeave fell despite strong AI demand signals. Markets are questioning whether heavy capex, rising debt, and margin pressure can justify massive investment.
Transcript
00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Investor sentiment weakened around AI infrastructure stocks as Broadcom, Oracle,
00:07and Corweave extended recent declines, according to CNBC. Investors are focusing on whether heavy
00:13capital spending, rising debt, and margin pressure can deliver returns that justify
00:17the scale of investment. Broadcom and Oracle both reported revenue beats and issued forecasts
00:23pointing to strong AI demand, yet their shares fell after earnings. Oracle said it will raise
00:28capital expenditures to $50 billion this fiscal year and disclosed $248 billion in long-term
00:35lease commitments tied to data centers and cloud capacity. Broadcom CEO Hawk Tan said AI chip sales
00:41are expected to double from a year earlier to $8.2 billion this quarter, driven by custom chips
00:47and AI networking semiconductors. Corweave shares also slid, with analysts highlighting elevated
00:53leverage across the AI infrastructure trade. For all things money, visit Benzinga.com.
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