RiskReversal Pod Cracks Forming In The AI Trade with Peter Boockvar
Nov 17, 2025
Peter Boockvar, Chief Investment Officer and author of the insightful Book Report, dives into the shifting landscape of AI investments and market dynamics. He highlights cracks in the AI trade, citing Oracle's struggles and Meta's spending effects. The discussion navigates overbuild concerns in data centers and evaluates how competition, particularly from China, could diminish pricing power. Additionally, Boockvar sheds light on the labor market's slow deceleration, Bitcoin's correlation with tech stocks, and the bullish outlook on energy and big-cap pharma amid recent regulatory clarity.
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Cracks In The AI Trade
- The AI trade's broad dominance is showing cracks as balance-sheet and spending risks surface.
- Oracle and Meta reveal the market is questioning massive CapEx bets tied to AI revenues.
OpenAI As A Systemic Connector
- OpenAI sits at the center of many revenue promises and counterparty exposures.
- Companies like Oracle tied to OpenAI face signaling risk even without default probability.
Data Centers Could Become Oversized
- Data center build-outs risk overcapacity because compute often becomes smaller and more efficient.
- Big facilities may be underused as chip and software advances reduce footprint needs.