Prediction: These Stocks Will Collapse If the AI Bubble Pops in 2026

Core Viewpoint - The AI sector is experiencing significant valuation increases and infrastructure spending, raising concerns about a potential bubble reminiscent of the year 2000 [1][14] Oracle - Oracle's reliance on OpenAI is seen as a liability rather than an asset, with the company heavily investing in AI and increasing capital expenditures by 200% year-over-year, now projected at $50 billion for fiscal 2026 [3][6] - The company raised $18 billion in a bond sale, indicating aggressive borrowing to fund its AI initiatives, with credit default swaps tripling in price, reflecting increased risk [4][5] - OpenAI's commitment to spend $300 billion over five years on Oracle's services raises concerns, as OpenAI remains unprofitable and will need to secure substantial capital to meet its obligations [6][7] CoreWeave - CoreWeave has tripled its revenue in the past year but is heavily leveraged, carrying about $15 billion in debt, which is nearly four times its total revenue [8][9] - The company's interest expenses have surged by nearly 200% year-over-year, now exceeding a fifth of its total revenue and approximately six times its gross profit [9] - CoreWeave's customer base is highly concentrated, primarily relying on a few major clients like Microsoft, which poses risks if demand for AI processing power declines [10][11] - Although CoreWeave has a $6.3 billion backstop agreement with Nvidia, it may not be sufficient if AI demand cools significantly [12]