These Will Be Among The First Casualties When The AI Bubble Bursts

The AI-driven equity rally is underpinned by surging debt and credit market stress and extreme valuation levels, reminiscent of the 1999 and 2007 bubbles. Hyperscalers like Oracle face mounting risk from massive capex, rising debt, and reliance on fragile counterparties such as OpenAI. OpenAI's delayed IPO, heavy cash burn, and market share losses heighten default risk, threatening major partners and investors. The article below highlights three large and well-known names that will be among the first casualties when/if the AI Bubble finally pops.

The major indexes remain near all-time highs. S&P 500 profit growth has been more than impressive in Q2, with nearly 50% year-over-year growth so far this quarter. Margins are over 50% above their levels in 2022 and at historical highs.