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

German Equities Are up Despite Country's Turbulent Economy in 2023, 2024

Seeking AlphaFeb 25 15:13 ET

Trending Industry Today: NaaS Technology Leads Losses In EV Charging Stocks

Moomoo NewsFeb 25 10:20 ET

Morgan Stanley: Generative AI is expected to achieve positive returns this year, with revenue likely to exceed one trillion dollars by 2028.

Morgan Stanley indicates that 2025 may see the ROI critical point, with a gross margin of 34% marking the Industry's formal crossing of the break-even line; by 2028, the total revenue from generative AI is expected to approach 1.1 trillion dollars, with the ROI likely improving to around 67%, and several Technology giants like Amazon and Meta are expected to benefit from the AI wave.

wallstreetcnFeb 25 08:21 ET

Report: In 2024, investors find value in certain green Energy stocks.

The performance of Energy Stocks last year was mixed, but some green energy stocks offered value to investors. From January 2024 to February 2025, the S&P Global Clean Energy Transition Index dropped by 28%, while the Bloomberg Goldman Sachs Global Clean Energy Index rose by 6%. These two indices track publicly listed companies that benefit from the transition to low-carbon energy. At the same time, a broader indicator led by integrated oil companies—the Bloomberg World Energy Index—fell by 7% during the same period. This indicates that in certain areas of the Industry, clean energy stocks were even able to outperform fossil fuel stocks. The performance of the clean energy stock index was mixed and different.

Global Market ReportFeb 25 03:57 ET

European electrification stocks fell due to concerns about Microsoft's capital expenditures.

European electrification stocks declined after an Analyst report stated that Microsoft has started canceling Datacenter capacity leases in the USA. TD Cowen cited channel checks or inquiries to supply chain vendors on Friday, indicating that OpenAI's largest supporter has canceled a total of "hundreds of megawatts" of leases. Schneider Electric fell by 6.5%, Prysmian dropped by 4.2%, Legrand declined by 3.3%, and Siemens Energy decreased by 5.9%.

Global Market ReportFeb 24 11:16 ET