Economist: AI-related spending mainly comes from companies' own cash flow rather than excessive borrowing
PANews, January 16 – Payden & Rygel economist Jeffrey Cleveland stated in a report that most of the spending related to artificial intelligence comes primarily from companies' own cash flow, rather than excessive borrowing. He noted: "Although we are closely monitoring corporate leverage—a common leading indicator before an economic downturn—the current debt growth remains quite moderate compared to those periods of excessive expansion in history." Cleveland believes that the AI boom is unlikely to evolve into a bubble, and commented: "For investors, the real risk today may not be entering too late, but rather exiting this theme too early."
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