What happened
Anthropic said third-quarter revenue grew more than threefold versus the first three months of the year, and TSMC reported a sixth consecutive record quarterly profit, but AI stocks fell and S&P futures were down.
Why it matters
Bumper earnings from bellwether tech giants did little to assuage a market that has turned bearish on the AI trade.
Summaries like this, in your inbox every morning.
The market's reaction marks a contrast with the usual pattern in which strong results from bellwether tech giants lift sentiment across the AI trade. This time, bumper earnings from Anthropic and TSMC did little to assuage a market that has turned bearish.
The concern is not demand but the cost of sustaining it. Traders are worried about the side effects of sustaining that growth, specifically the huge infrastructure buildout and the massive debt issuance funding it. One AI cloud computing provider has seen yields on its bonds touching 15%, a signal of the strain investors perceive in the financing chain.
Asian stocks were down, and S&P futures followed. The two results — one from a frontier AI lab, the other from a chipmaker — now appear insufficient on their own to reassure a market focused on the liabilities behind the growth.
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