AI spending is becoming more capital market sensitive, says portfolio manager

Industry
โดย Yahoo Finance·Read original
Summary · why it matters

Northwestern Mutual Wealth Management chief portfolio manager Matt Stucky said AI spending is becoming more sensitive to capital market conditions as financing increasingly relies on debt and equity markets, citing Amazon's bond sale and Google's equity issuance. He noted that despite recent equity volatility, there are no signs of a slowdown in AI spending plans for 2026 and 2027. Stucky expects only modest increases to 2026 budgets due to higher memory costs, with the key question being spending intentions for 2027. He added that capital market conditions will play a larger role in determining the extent of continued buildout in 2027.

Impact on stocks 3

Artificial Intelligence▲ · 3 stocks
NVIDIA Corporation
NVDA
± MixedDemandrelevance

Article notes no slowdown in AI spending plans for 2026-2027, implying sustained demand for NVIDIA's chips, but also mentions higher memory costs may temper budget increases.

Amazon.com Inc
AMZN
± MixedCapitalrelevance

Amazon's bond sale mentioned as example of debt financing for AI spending, but no direct impact on company.

Alphabet Inc Class C
GOOG
± MixedCapitalrelevance

Google's equity issuance mentioned as example of equity financing for AI spending, but no direct impact on company.

Theme Impact 2

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