AI Sector Rebounds, But Debt & Valuation Concerns Persist

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Hello, this is Hui Jie writing to you from Singapore. Welcome to another edition of CNBC’s Daily Open.

After a bruising week for the tech trade, investors seem to have came back into the sector, with the Nasdaq Composite rallying overnight.

The optimism is cautious, with debt concerns still a key worry for a sector that has seen record bond issuance this year.

Investors are once again piling

CNBC’s Jim Cramer said he’s not in a hurry to rush back into artificial intelligence stocks, despite Monday’s rebound in the battered technology sector.

“Even after today’s bounce, I think it’s too soon to say the coast is clear and it’s safe to dive back into the hardest hit AI data center stocks,” the “Mad Money” host said, explaining the group faces technical and fundamental headwinds that cannot be ignored.

The Nasdaq Composite rose about 1.1% Monday as investors returned to tech stocks fo

Oct 19 (Reuters) - Former Google CEO Eric Schmidt owns about 1% of Anthropic, positioning him for one of the largest individual windfalls when the AI startup goes public, Bloomberg News reported on Monday.

• Schmidt invested tens of millions of dollars in Anthropic’s Series A funding round, the report said, citing people familiar with the matter. It was unclear whether he has sold any of his stake since.

• Anthropic and Schmidt’s representatives did not immediately respond to Reuters’ requests