It’s certainly not a Big Short. More like bigger than expected. According to Goldman Sachs’ latest report on hedge fund positioning, seen by the Financial Times on Monday, Wall Street’s smart money is starting to take out some short positions on the AI trade, albeit mostly around the industry’s fringes. Still, the skepticism comes amid growing fears of a broader AI bubble, which yesterday’s rally hardly ended. SUBSCRIBE:  Receive more of our free The Daily Upside newsletter. READ ALSO: Can Google Conquer ...

Market Overview - The tech-heavy Nasdaq Composite rose approximately 2.4%, leading major indexes higher after a week of volatility, with significant gains in AI stocks and chipmakers like Broadcom (AVGO) and Micron (MU), both up over 7% [1][6] - Retail investors contributed to the market rebound by aggressively buying the dip, as indicated by a sharp increase in S&P 500 ETF inflows during the previous week's decline [1][6] Investor Sentiment - There are signs of improving investor sentiment, particularly among retail investors, as they often reflect market sentiment and their behavior can drive stock market returns [2] - The AAII Sentiment Survey indicated a slightly more optimistic outlook among individual investors compared to the previous week, when nearly half were bearish [9] Economic Concerns - Concerns about an AI bubble and uncertainty regarding monetary policy have weighed on market sentiment, with the S&P 500 and Nasdaq dropping nearly 2% and 2.7% respectively last week [3] - Investors are particularly focused on whether the Federal Reserve will cut interest rates next month, with mixed signals from the labor market and inflation data influencing expectations [4][7] Volatility and Market Indicators - The Cboe Volatility Index (VIX) stood at about 21, indicating a level above which stocks typically experience smoother trading conditions [8] - CNN's Fear & Greed index showed less pessimism after recording its most negative reading since early April, suggesting a potential shift in market sentiment [8]

Core Insights - The world's largest technology companies are raising nearly $100 billion through bond offerings to enhance their artificial intelligence infrastructure, marking a shift from their traditional reliance on cash for investments [1][2]. Group 1: Investment Trends - Tech giants, including Amazon, Microsoft, Google, Oracle, and Meta, are expected to spend $400 billion on data centers, nearly doubling last year's investment, despite concerns over a potential AI bubble [2]. - Deutsche Bank projects that global AI-related investment could reach $4 trillion by 2030, driven by a strong demand to commercialize AI technology [3]. Group 2: Company-Specific Bond Offerings - **Amazon** plans to raise $15 billion through its first U.S. dollar bond sale in three years, with the offering attracting $80 billion in demand. Amazon's outstanding debt is $69.29 billion, and it has cash and cash equivalents of $66.92 billion [4]. - **Oracle** filed to raise approximately $18 billion in debt to fund AI infrastructure, with outstanding debt of $101.25 billion and cash and cash equivalents of $10.45 billion [5]. - **Verizon** aims to raise about $11 billion to finance its $20 billion acquisition of Frontier Communications, with outstanding debt of $139.62 billion and cash and cash equivalents of $7.71 billion [5]. - **Alphabet** filed to raise $17.50 billion in the U.S. and €6.5 billion ($7.49 billion) in Europe for general corporate purposes, including debt repayment. Its outstanding debt is $48.78 billion, with a cash balance of $23.09 billion [6]. - **Meta Platforms** is pursuing its largest bond offering of up to $30 billion to finance AI infrastructure expansion, amid significant cost pressures and increased capital expenditure [7].

Core Viewpoint - Michael Burry expresses concerns about an AI bubble, drawing parallels between the current AI boom and the late-'90s dotcom crash, specifically highlighting Nvidia as a key player in this potential bubble [1][4]. Group 1: AI Boom and Comparisons - Burry describes the AI boom as a "glorious folly," similar to the dotcom era, where companies are innovating themselves to potential failure [2]. - He identifies five major companies in the current AI landscape, likening them to the "Four Horsemen" of the dotcom boom: Microsoft, Google, Meta, Amazon, and Oracle [2]. Group 2: Historical Context - Cisco is noted as a pivotal company during the dotcom bubble, with its stock soaring 3,800% from 1995 to 2000, only to collapse by over 80% afterward [3]. - Burry suggests that Nvidia is the modern equivalent of Cisco, positioned at the center of the current AI boom with significant market influence [4]. Group 3: Market Valuation Concerns - Nvidia has reached a market valuation of approximately $5 trillion, raising alarms about a potential "Cisco moment" in the next 24 months, as noted by Morgan Stanley's chief investment officer [5]. - Burry's hedge fund, Scion Asset Management, has taken a bearish position on Nvidia and Palantir, purchasing over $1 billion in put options, indicating skepticism about their future performance [4].

Group 1: Federal Reserve and Market Sentiment - Market confidence in a Federal Reserve rate cut has increased, with expectations now over 75% for a cut next month [2][10][54] - Federal Reserve Bank of New York President John Williams indicated that a December rate cut is a possibility, contributing to market optimism [3][11] - The CME Fed Watch tool suggests potential for rates to drop to around 3% by next Christmas, indicating a significant shift from current levels [13] Group 2: Technology Sector Developments - Alphabet's shares are expected to rise following a multi-million dollar deal with NATO for AI-enabled cloud services and the launch of its new AI model, Gemini 3 [4][40] - Alibaba's Quen app achieved over 10 million downloads post-relaunch, positioning it as a competitor to OpenAI's ChatGPT [5] - Nvidia's market performance remains under scrutiny due to concerns over an AI bubble and competition from China, despite strong earnings [14][40] Group 3: Retail Sector Insights - Upcoming earnings reports from major retailers like Kohl's and Best Buy are anticipated, with mixed consumer sentiment reflected in recent retail performance [7][16] - The economic landscape shows signs of a bifurcated consumer market, with some consumers feeling financial strain while others thrive [17][56] - Gap's CEO discussed growth strategies amid a challenging retail environment, emphasizing the importance of both physical and digital presence [57][58] Group 4: Defense and Agricultural Stocks - European defense stocks have seen a decline due to growing hopes for a peace deal between Russia and Ukraine, reversing earlier gains [35] - Eli Lilly has become the first trillion-dollar company in the agricultural sector, driven by its leadership in obesity drugs [38] - Bayer's stock is rallying due to progress in clinical trials for a new stroke prevention drug, while Nova Nordisk faces challenges with underwhelming trial results for Alzheimer's drugs [39]

That's right. The chip stocks obviously hit by fears of an AI bubble last week. We did see some profit taking after strong gains.Joining us right now for more on the semis sector now though is Stacy Rascin Bernstein senior analyst. And and Stacy, the dust has cleared a little bit from the big release last week. Everybody was waiting to hear what Nvidia had to say.Turns out they had much better numbers than people had anticipated, much better guidance than people had anticipated. And yet the stock sold off a ...

Core Viewpoint - Oracle Corporation (NYSE:ORCL) is currently viewed as one of the best cloud stocks to buy, despite a significant decline of over 39% in its stock price over the past two months due to concerns surrounding a growing AI bubble [1][2] Group 1: Stock Performance and Analyst Ratings - Robert Oliver from Robert W. Braid reiterated a Buy rating on Oracle, lowering the price target from $365 to $315 on November 18 [1] - Brent Thill from Jefferies also maintained a Buy rating with a price target of $400 on November 17 [1] - Analyst Jackson Ader from KeyBanc Capital Markets has a Buy rating with a price target of $350, noting that "AI sentiment is waning" [4] Group 2: Leadership Changes and Debt Concerns - The stock price began to decline significantly after the announcement of the replacement of longtime CEO Safra Catz with Clay Magouyrk and Mike Sicilia on September 22 [2] - Oracle raised $18 billion in debt last month, bringing its total debt to over $100 billion [2] Group 3: Credit Default Swaps and Market Sentiment - Traders have been hedging Oracle's credit-default swaps, with the price of the 5-year CDS tripling to around $111,000 per year to protect $10 million of the company's debt from default over five years [3] - Concerns regarding the company's credit trajectory have been highlighted, with analysts struggling to see an improvement [4]

Key Points Nvidia beat estimates in its Q3 report and reported accelerating revenue growth. Jensen Huang dismissed concerns about an AI bubble. Investors may be better off focusing on companies like OpenAI and Anthropic to assess the strength of the AI boom. 10 stocks we like better than Nvidia › They say the sequel is never as good as the original, but Nvidia (NASDAQ: NVDA) seems to be proving that wrong. Three years after the launch of OpenAI's ChatGPT, which kicked off the artificial intellige ...

Market Dynamics - Increased competition benefits users as AI labs lower prices by spending heavily [1] - Intense competition may raise concerns about an AI bubble in both public and private markets [1]

Crypto Market Fundamentals - Crypto market fundamentals are the strongest they've ever been [1] - Increasing adoption of stablecoins, tokenization, prediction markets, and DeFi are observed [1] - Crypto projects are finally distributing value to holders [1] - A regulatory pivot with a major catalyst (CLARITY ACT) is anticipated [1] Competition and Challenges - The AI bubble poses a challenge as crypto competes with AI for capital inflows [2] - Crypto is the first to be affected by the AI bubble crash [2] - Survival of the fittest is the only solution in the current market [2]