Billionaire “Bond King” Jeffrey Gundlach says the AI frenzy fueling US stocks is being driven by powerful momentum forces that can flip sharply once stress appears. In a new Fox Business interview, the DoubleLine Capital founder says the rise of passive investing has created a feedback loop in mega-cap equities, especially companies tied to artificial intelligence. “Well, it is obviously a huge momentum investment. There is so much passive investment now. The passive assets and passive funds. crossed over the assets and active funds. And that just means that money pours in, and they are buying the market-cap-weighted indices, like…
Author: Henry Kanapi
Henry Kanapi
Henry Kanapi is a journalist and editor covering the intersection of artificial intelligence, financial markets, and technology disruption. He has sourced, written, and edited thousands of stories on crypto, banking, and macroeconomics as Senior Editor at The Daily Hodl, where he helped shape coverage for an audience of over two million monthly readers. At CapitalAI Daily, Henry brings a decade of newsroom experience to fast-paced reporting on AI breakthroughs, market shifts, fraud cases, and regulatory battles. His focus is on accuracy, clarity, and exposing how money moves in the age of artificial intelligence. Henry’s work has been cited by leading financial outlets, investment firms, and research communities tracking the future of markets. He is committed to a high editorial standard rooted in transparency and trust.
The cost to insure Oracle’s (ORCL) debt has surged sharply as investors search for protection against a potential reversal in the AI boom. The price of five-year credit default swaps (CDS) tied to Oracle has tripled in recent months to around 1.11 percentage points per year, or about $111,000 to insure $10 million of debt, reports Bloomberg. A CDS serves as insurance against a company defaulting on its debt. When CDS prices explode, it shows that traders believe the firm’s credit risk is worsening. Data shows that trading volume in the swaps has swelled to about $5 billion over seven…
Fed Governor Lisa Cook says artificial intelligence could quietly learn to manipulate financial markets, posing risks that regulators have yet to confront fully. In a speech at Georgetown University, Cook warns that AI trading algorithms could distort asset prices without explicit instructions to do so. She highlights that AI trading systems can possibly learn how to manipulate markets by placing spoof orders. “There is also the troubling possibility that AI trading systems could learn to manipulate markets. A recent theoretical study shows that self-learning, profit-maximizing algorithms can unintentionally discover spoofing strategies—that is, placing large orders they never intend to execute just…
A top hedge fund investor believes stock and AI bears will be left on the sidelines once macro tailwinds take effect. In a new Fox Business interview, billionaire Bill Ackman of Pershing Square Capital says many investors are torn between fear of an AI bubble and belief in long-term transformation. To make matters worse for investors, Ackman notes that some stress is emerging in private credit markets, adding to the search for downside risks after years of strong performance. “And I think, you know, people sort of scratching their heads about the AI investment. Is this a frightening investment, or…
“Big Short” investor is sharpening his AI short thesis, taking aim at the economics behind the GPUs powering the boom. Burry recently made a call that hyperscalers are extending the lifecycle use of AI chips and hardware to understate asset depreciation and boost profitability. According to Burry, the fraudulent accounting practice will result in a $178 billion earnings distortion in the coming years. But AI bulls are pushing back, arguing that GPUs can run profitably for six years, making the extended lifespan reasonable. In a fresh post on X, Burry says AI bulls are missing the bigger picture. “The idea…
A veteran investor is warning that parts of the artificial intelligence economy may not survive the current spending boom. Kamil Dammich, partner and portfolio manager at North of South Capital, says in a new CNBC interview that the surge in GPU demand echoes the behavior seen in late 1990s tech markets. He recalls watching the internet bubble form at the start of his career, when companies poured money into infrastructure before real revenue materialized. When expectations failed to match earnings, he says the shakeout hit fast. “And I cut my teeth. I started off working back in the late 90s,…
The US stock market just erased $2 trillion in value, and one of the world’s most influential investors says the warning signs were already flashing. In a new CNBC interview, billionaire Ray Dalio says the market is inflating into a bubble as investors rush in and confuse market excitement with long-term value. He notes that today’s stocks are being priced as if the trajectory for the next two and a half decades is guaranteed. “There is definitely a bubble in markets. Bubbles are when there is a lot of creation of wealth from various ways, like you decide you are…
Nvidia chief executive Jensen Huang says talk of an AI investment bubble misses the real issue, noting that the world does not have enough compute to meet the enormous surge in demand now accelerating across industries. Speaking at the U.S.–Saudi Investment Forum, Huang highlights the collapse of Moore’s Law, indicating that general-purpose chips can no longer keep up with the demand for data processing worth hundreds of billions of dollars. He says companies are now being forced to shift to accelerated computing, and that transition is only beginning. “Six years ago, CPUs were 90% of the world’s supercomputers, top 500…
Atreides Management chief investment officer Gavin Baker says the United States is pulling ahead in the global artificial intelligence hardware race, fueled by the rollout of Nvidia’s Blackwell architecture. In a new commentary on X, Baker says China’s semiconductor ecosystem is losing critical ground as US firms ramp the next generation of compute. “Blackwell will likely significantly increase the gap between the American frontier models and Chinese open source models.” He says domestic Chinese AI chips are no longer close enough to compete on performance. He says the gap is widening faster than analysts appreciate. “The domestic Chinese semiconductors are…
Goldman Sachs says history suggests most major technology revolutions lead to stock market bubbles, but artificial intelligence is not there yet. In a new CNBC interview, Kim Posnett, the bank’s co-head of investment banking, points to a sweeping new equity research report that examined nearly two centuries of innovation cycles. She says the long-term direction remains clear. “A report that our equity research team just did… looked at 51 periods of major tech innovation over a 175-year period. They found that 75% of the time, that led to equity price bubbles.” Despite the similarities, she says today’s AI cycle has…