Drawing lessons from history, is this wave of AI capital expenditure a boom or a bubble?

Deutsche Bank believes that historically, capital expenditure booms often end in collapse. The key factor that distinguishes prosperity from recession is the level of leverage (debt) involved. Historical experience shows that credit-intensive capital expenditure booms often lead to more severe recessions. Considering the current AI spending boom, which is primarily funded by the profits of large Technology companies in the USA rather than debt, this somewhat reduces systemic risk. However, the ratio of USA household net Assets to disposable income is at a historical high, and the concentration of the stock market has also hit a new high, which increases the systemic risk brought about by the transmission of wealth effects.

wallstreetcnFeb 28 05:03 ET

Arm Holdings Options Spot-On: On February 27th, 71,039 Contracts Were Traded, With 711.33K Open Interest

Moomoo NewsFeb 27 16:30 ET

Express News | Shares of Semiconductor Companies Are Trading Lower in Sympathy With Nvidia, Which Reversed Amid a Possible Selloff After Reporting Q4 Financial Results

BenzingaFeb 27 13:32 ET

Better Semiconductor Stock: AMD Vs. Arm Holdings

Yahoo FinanceFeb 27 07:37 ET

Trending Industry Today: NEBIUS Leads Gains Pre-Market In NVIDIA Portfolio Stocks

Moomoo NewsFeb 27 05:20 ET

Nvidia in Focus as Q4 Results, 2026 Guidance Top Expectations on 'Amazing' Blackwell Demand

Seeking AlphaFeb 26 16:29 ET