AI chip rebound amid data center, funding and credit concerns
Semis bounced hard premarket after a brutal selloff, while data center pause risk and SoftBank's widening CDS point to AI-sector stress.
What we know
Walter Bloomberg says SOXX is up nearly 5% premarket, with Lam +9% and Micron +7.5%. Wall St Engine cites Cleanview: 41% of planned US data center capacity sits in states backing a pause. SoftBank's 5-year CDS widened to 466 bps, the widest since 2022. Thinking Machines is nearing a $5B raise at a $40B pre-money valuation. Zephyr claims Anthropic is running a new pretrain every 45-60 days. GPT-6 Cyber was also released.
How the story developed
Semis bounced hard premarket after a brutal selloff, while data center pause risk and SoftBank's widening CDS point to AI-sector stress.
Signs of financial stress include reported hedge fund liquidations, SoftBank CDS at its widest since 2022, and ING selling data center loans. Bubble warnings are spreading.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.