Bank of America warns of growing investor reluctance to fund AI infrastructure build-out, citing recent market signals:
- IPO Withdrawal: AI data center developer Firmus withdrew its IPO due to weak demand .
- Yield Spikes: CoreWeave's unsecured bond yields touched 15%, and its shares fell 15% .
- Sector Rotation: MSCI Europe AI Capex Select index is down ~15% since early October, reversing gains. European cyclicals underperformed defensives by 11%, the worst since March 2020 .
- Semiconductors Hit: Semiconductors are the worst performer, down 15% relative to other sectors .
BofA remains concerned about rising funding costs squeezing returns and potential monetization disappointments, echoing prior capex cycles . This comes as Nvidia's CEO visits Kazakhstan to promote AI computing hubs, highlighting ongoing global AI infrastructure expansion efforts .
BofA sees growing investor reluctance to fund AI infrastructure
STREETINSIDER.COMOct 23, 11:12 AM UTC
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