"Fortune's Shawn Tully reported Nvidia is facing small, but increasing skepticism among Wall Street analysts, with "cracks appearing" in its strategy. Shalett told Fortune in early October she was "very concerned" about what she was seeing in the AI space, with circular financing and market concentration among her concerns. "At the end of the day ... this is not going to be pretty," if and when the massive spending story in the AI space begins to break down, she said."
"Global fund managers are signaling a historic reversal in sentiment regarding corporate spending, driven primarily by concerns over the aggressive pace and financing of the artificial intelligence (AI) capital expenditure boom. According to the latest Bank of America (BofA) Global Fund Manager Survey (FMS) conducted Nov. 7-13, investors have warned companies are "overinvesting" for the first time in two decades."
A Bank of America Global Fund Manager Survey conducted Nov. 7-13 polled 202 panelists managing $550 billion in AUM and found a net 20% of investors believe companies are deploying capital too aggressively, a sentiment not seen since August 2005. The shift is explicitly linked to the magnitude and financing of the AI capital-expenditure boom. Rising skepticism toward Nvidia, concerns about circular financing and market concentration, and hyperscaler spending prompted a global stocks sell-off. Investors read the change as a signal for high-growth tech firms to slow spending as overinvestment raises broad corporate balance-sheet worries and elevates AI as a top tail risk.
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