Wall Street warns of rising AI debt risk as stocks slide on wobbly investor confidence — analysts warn of 'systemic risk' as Nvidia share price creaks

Financial institutions are expressing concerns about the growing debt levels of top tech and AI firms, as stock prices fluctuate and investor confidence wanes. Companies like Nvidia, Microsoft, and others have seen significant stock price increases due to AI-related deals, but profitability remains uncertain for many. Oracle, for example, has taken on substantial debt to fund its AI initiatives, leading to a decline in its share price. While some experts believe the AI bubble won't burst soon, investors are increasingly seeking returns on their AI investments, putting pressure on companies to deliver profits.