Business · Markets · 1 day ago

Nvidia appears to avoid an AI credit scare hitting Broadcom and Oracle

Nvidia appears to avoid an AI credit scare hitting Broadcom and Oracle

An AI-related credit scare is weighing on Broadcom and Oracle, while Nvidia’s stock appears to have avoided the same impact.

The three companies are being compared in connection with investor concerns about credit risk in the AI sector.

Their price-to-earnings ratios, which compare share prices with company earnings, have fallen.

Their credit default swap spreads, a measure linked to the cost of insuring against debt default, have widened.

That means the measures have moved in a negative direction for all three companies, even though Nvidia’s stock is described as unscathed.

The available information does not explain why Nvidia’s stock has held up better or say what may happen next.

Sources

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