TechBloomberg Tech1h ago

Markets Are Reevaluating AI 'Speed Limit,' Schwab's Sonders Says

TL;DRInvestors question whether AI infrastructure costs will actually deliver profitable returns.

Why it matters: AI stock valuations depend on this math working out; if it doesn't, expect significant repricing.

Liz Ann Sonders, chief investment strategist at Charles Schwab, says investors are reassessing the financial burden on hyperscalers, including their use of credit and equity financing, and whether returns on investment justify the cost of capital. She speaks on "Bloomberg The…

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Source: Bloomberg Tech · Opens in new tab