BREAKINGVIEWS — AI boom stumbles over white swan events
(The author is a Reuters Breakingviews columnist. The opinions expressed are her own.) By Jennifer Johnson LONDON, Oct 15 (Reuters Breakingviews) — Shares in Nvidia and TSMC are falling and GPU landlords like $36 bln Coreweave are down far more. The declines mostly reflect known-knowns, like high neocloud leverage and potential rate hikes. But deeper worries about AI’s funding model, and the durability of demand, may follow. Full view will be published shortly. Follow Jennifer Johnson on Bluesky and LinkedIn. Context News US chipmakers, hyperscalers and cloud computing groups are poised for a second consecutive day of sharp selloffs on October 15 following an uptick in consumer price inflation. Heavily-indebted data centre operator CoreWeave fell more than 6% in premarket trading, following a 15% drop on October 14. Meanwhile shares in Oracle, the cloud computing giant, were down 2% after falling nearly 9% the previous day. The rout is a global phenomenon, with South Korea's KOSPI index — whose cohort of major chipmakers have made it one of the top beneficiaries of AI euphoria — plunged almost 8% during trading on October 15. (Editing by Neil Unmack; Production by Maya Nandhini) ((
(The author is a Reuters Breakingviews columnist. The opinions expressed are her own.) By Jennifer Johnson LONDON, Oct 15 (Reuters Breakingviews) — Shares in Nvidia and TSMC are falling and GPU landlords like $36 bln Coreweave are down far more. The declines mostly reflect known-knowns, like high neocloud leverage and potential rate hikes. But deeper worries about AI’s funding model, and the durability of demand, may follow.
Full view will be published shortly. Follow Jennifer Johnson on Bluesky and LinkedIn. Context News US chipmakers, hyperscalers and cloud computing groups are poised for a second consecutive day of sharp selloffs on October 15 following an uptick in consumer price inflation. Heavily-indebted data centre operator CoreWeave fell more than 6% in premarket trading, following a 15% drop on October 14.
Meanwhile shares in Oracle, the cloud computing giant, were down 2% after falling nearly 9% the previous day. The rout is a global phenomenon, with South Korea's KOSPI index — whose cohort of major chipmakers have made it one of the top beneficiaries of AI euphoria — plunged almost 8% during trading on October 15. (Editing by Neil Unmack; Production by Maya Nandhini) ((For previous columns by the author, Reuters customers can click on JOHNSON/ mailto:Jennifer.Johnson@thomsonreuters.com)