Yardeni Says AI Boom Will Last, but AI Stock Swings May Persist

what happened

Veteran strategist Ed Yardeni, in a note reported by Stocktwits, still expects artificial intelligence spending to keep growing, but he warns that AI-linked equities could stay unsettled. His October 29 QuickTakes piece points to three things that restored investor confidence: available financing, better AI unit economics and robust results from chipmakers.

He counted roughly $235 billion of prospective AI funding. The list includes Anthropic's expected $100 billion IPO, Meta Platforms' plan to raise as much as $95 billion through share sales, and SpaceX's roughly $40 billion GPU financing arranged through an Apollo-managed lease. Anthropic's IPO filing showed first-half revenue climbing to $16.3 billion, while its operating loss shrank to $693 million.

Alphabet's shares slid after its third-quarter revenue and earnings fell short, yet Google Cloud revenue more than doubled to $30.7 billion. SK Hynix reported third-quarter operating profit up more than sevenfold, and according to Yardeni, the company expects memory shortages through 2030. Separately, Yardeni Research said the Fed held rates at 3.75%–4% in a 10-2 vote, that neutral sits at 4.25%–4.50%, and that another 50 basis points of tightening is needed, with a 50 bp hike in December not ruled out.

why it matters

For markets, the financing pipeline suggests AI builders can tap both debt and equity, which lowers the risk of an abrupt pullback in spending. However, the case for firmer Fed policy keeps rate-sensitive growth stocks under pressure.

market impact

AI stocks and chipmakers: financing and demand support, but volatility may persist; Fed tightening view weighs on rate-sensitive assets

• ↔AI-linked stocks mixed — financing and chip demand support them, while volatility is expected to persist
• ▼US Treasuries pressure down — the case for further Fed tightening points to higher yields and lower bond prices

instruments