Jeff Gundlach, CEO of DoubleLine Capital, criticized NVIDIA Corporation (NVDA.US) for signing memorandums of understanding with six major financial institutions to raise more than USD500 billion for AI infrastructure, opining Wall Street is trying to turn AI chips into an investable asset class, which could signal that risk markets are approaching a peak.

Gundlach questioned whether it is wise to use rapidly evolving technology as collateral for long-term borrowing. He believed NVIDIA's fundraising plan is unlikely to stand the test of time, comparing the situation to using a warehouse full of bananas as collateral for 30-year asset-backed securities, even if those bananas are newly cultivated bananas with unknown longevity.
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AASTOCKS Financial News
Website: www.aastocks.com

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