Big Debt And Massive AI Bet Not Yet A Threat

Wade Slome, CFA 1.46K Followers Follow Summary Government debt levels have reached stratospheric heights, and hundreds of billions in corporate borrowing are piling up to finance a gargantuan AI data center infrastructure buildout. As highlighted by the Peter G. Peterson Foundation, gross U.S. federal debt has officially breached the $40 trillion mark. A solid underlying economy, anchored by healthy employment metrics (4.1% unemployment in July) is receiving a direct shot of adrenaline from the colossal capital investment flowing into artificial intelligence. We remain in the early stages of the AI buildout, yet hyper-scalers and chipmakers are generating extraordinary top- and bottom-line expansion. For skeptics questioning whether end-user enterprises are seeing concrete returns on their AI investments, look no further than the cloud computing divisions of major tech providers. Khanchit Khirisutchalual/iStock via Getty Images Government debt levels have reached stratospheric heights, and hundreds of billions in corporate borrowing are piling up to finance a gargantuan AI data center infrastructure buildout. How have stock and bond investors responded to This article was written by Wade Slome, CFA 1.46K Followers Follow Wade W. Slome, CFA, CFP® is President and Founder of Sidoxia Capital Management, LLC and published author of How I Managed $20,000,000,000.00 by Age 32. In addition, Mr. Slome has been a media go-to resource as seen on CNBC and ABC News. He has also been quoted in the Wall Street Journal, USA Today, New York Times, Dow Jones, Investor's Business Daily, Bloomberg, Smart Money, among other media publications. Online, he is lead editor of the investment blog, InvestingCaffeine.com and a contributing writer to Morningstar, and Wall St. Cheat Sheet. Bloomberg identified him as the second youngest manager among the largest 25 actively-managed U.S. mutual funds in 2005. Besides his work at Sidoxia, Mr. Slome is an instructor at the University of California, Irvine extension department, where he teaches the Advanced Stock Investment course. Wade Slome holds an MBA from Cornell University with an emphasis in Finance. He earned a B.A. in Economics from UCLA. In addition, he holds the credentials of CFA (Chartered Financial Analyst) and CFP® (Certified Financial Planner). Mr. Slome managed one of the ten largest growth funds in the country ($20 billion in assets under management) at American Century Investments, and currently manages a hedge fund in addition to separate customized accounts for a selective client base at his firm (Sidoxia Capital Management, LLC) in Newport Beach, California.