Jim Cramer identified three primary risks currently facing the AI stock rally. A central concern involves the $63 billion financing deal for Anthropic, which Cramer previously endorsed on X before questioning the reliance on borrowed capital. The arrangement involves lenders like Blackstone and Bank of America providing funds through a special purpose vehicle to purchase Broadcom hardware.
Under the terms of the deal, Anthropic will lease equipment from the special purpose vehicle, with deliveries scheduled to begin in 2027. Broadcom has agreed to provide residual value support, absorbing part of the risk if the leased hardware depreciates. Cramer noted that Anthropic is utilizing debt rather than its own profits to acquire this technology.
The second and third risks concern the high debt levels of smaller firms known as neoclouds, which rent out AI computing power. Companies such as CoreWeave, Nebius, and Iren have borrowed heavily to construct data centers. Cramer highlighted that while CoreWeave shares rose nearly 8% on Tuesday, its bonds have yielded as much as 15%, reflecting significant borrowing costs.
Market volatility remains a concern as the Federal Reserve prepares for its upcoming interest rate decision. Analysts from Morgan Stanley anticipate that officials may signal further rate hikes. Additional factors, including upcoming midterm elections and potential geopolitical instability in the Middle East, could further impact the cost of debt for companies in the data center sector.
