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AI Buildout Splits Market as Infrastructure Stocks Slide and Compute Leaders Press Ahead

Concerns over debt-fueled expansion and thinner margins are reshaping bets on who will profit from the AI boom.

Overview

  • Oracle, Broadcom and CoreWeave fell again on Monday — Oracle down 2.7%, Broadcom 5.6% and CoreWeave about 8% — while major indexes were little changed as investors rotated away from AI infrastructure names.
  • Oracle lifted current-year capital spending to $50 billion and disclosed $248 billion in 15- to 19-year data-center lease commitments, drawing scrutiny of its financing strategy and reliance on debt.
  • Broadcom projected AI chip sales of $8.2 billion this quarter, roughly double year over year, but cautioned that gross margins will be lower on some AI systems.
  • Core compute demand remains constrained, with Nvidia saying cloud GPUs are sold out and Microsoft indicating limited AI capacity until at least June 2026.
  • Global expansion is accelerating, with Microsoft committing $17.5 billion to build cloud and AI infrastructure in India through mid-2026 and Amazon planning more than $35 billion there by 2030.