Economist Jeffrey Cleveland from Payden & Rygel reports that AI-related spending is largely funded by companies' own cash flow rather than excessive borrowing. Cleveland highlights that corporate debt growth is moderate compared to past periods of excessive expansion, suggesting that the AI boom is unlikely to become a bubble. He advises that the real risk for investors may be exiting the AI theme too early rather than entering too late.
AI Spending Driven by Cash Flow, Not Debt, Says Economist
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