About this episode

The episode discusses the implications of AI spending on Big Tech and the market, highlighting IBM's earnings warning and investor concerns.

AI spending is still powering parts of the market, but IBM’s warning raises a bigger question about whether companies can keep funding the boom without cutting elsewhere. Chuck Zodda and Marc Fandetti break down why a flood of stock and bond issuance is testing investor appetite, how IBM’s earnings warning highlights the pressure AI spending is putting on older software and consulting businesses, and why hyperscalers may eventually need to prove that AI can replace labor rather than simply assist workers. They also discuss ASML’s stronger outlook, why the Magnificent Seven have struggled despite earnings growth, what to watch for if data center spending slows, and Todd Lutsky’s explanation of what the Medicaid application process really requires.

People in this episode

Hosts: Chuck Zodda, Marc Fandetti

Topics covered

• AI spending
• Big Tech
• investor appetite
• stock issuance
• data center spending
• Medicaid application process

Keywords

• AI spending
• Big Tech
• IBM
• stock issuance
• data center
• Medicaid

Mentioned in this episode

Organizations: IBM, ASML, Magnificent Seven, Medicaid

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