KKR estimates AI-linked debt at $600 billion (6.3% of US investment-grade market), with AI exposure potentially approaching 20% of the IG index through 2030. Micron reported strong Q4 earnings exceeding expectations, but stock declined due to gross margin guidance reduction, planned capex surge, and profit-taking after significant year-to-date gains, despite robust AI memory demand and data center growth.
Nvidia's $500 billion financing plan using AI chips as collateral faces skepticism from Wall Street banks and investors who question the long-term value of the hardware and want stronger guarantees than originally proposed. The disagreement highlights broader concerns about the sustainability of AI infrastructure investments and financing structures reminiscent of past market bubbles.