Can Oracle survive rising debt and falling cash flow while Broadcom battles Google in AI chips? Siegel warns AI works but tech spending may be massively overbuilt.

by

From the recent earnings of Oracle and Broadcom, two things have become unmistakably clear.
For Oracle, debt has surged nearly 50%, while operating cash flow is declining—a troubling combination that markets quickly punished. The stock fell roughly 11% after the earnings release.
For Broadcom, the issue is different: Google’s TPU chips are now creating real competitive pressure, challenging Broadcom’s AI acceleration momentum. The stock dropped about 5% post-earnings, largely on valuation concerns rather than balance-sheet risk.

In short:

For Broadcom ( $AVGO), the concern is lofty valuation and tightening competition.

For Oracle ( $ORCL), the concern is rising leverage and deteriorating cash flow.

For now, corporate buybacks and Fed-driven liquidity are doing much of the heavy lifting to keep the broader market supported.

When asked about whether AI stocks are priced too high, Jeremy Siegel said:

“I think the biggest risk in AI investing is not whether it will work or not, but can it be done more cheaply?”

Firstly, Siegel is a professor at the Wharton School of Business and has been analyzing markets for decades.

His point is AI will work and transform the economy—there’s no doubt in this.

The real risk is whether tech companies are spending too much ($1 trillion) on data centers to power AI.

He pointed to a historical example:

During the dot-com boom in the late 1990s, telecom companies laid thousands of miles of fiber optic cables across the country.

They spent BILLIONS doing this.

Then engineers discovered multiplexing—a way to send a thousand times more data through the same cables.

Suddenly, all that infrastructure spending was unnecessary, contributing to the inevitable crash.

Siegel is suggesting something similar could happen with AI.

What if someone figures out how to run AI much more efficiently?

The technology might work perfectly, but the current approach could be massively overbuilt.

PS – Siegel covers this in more detail on his interview with CNBC.

If you’d like to watch this to learn:

– The 3 reasons why AI will transform the world just like the internet did in 90s
– Why the biggest risk right now is if it can run more efficiently
– How to position yourself when the inevitable crash happens

RT and comment “SIEGEL” and I’ll DM it to you immediately.

You have 4 Major Negatives against Market

1. Yen Carry Trade

2. Gold and Silver Squeezing Major Banks

3. Institutions Heavily leveraged with Ai companies that are heavily overvalued

4. MOASS as a Result of their Short Sales being Liquidated

The Yen Carry Trade is the Elephant in the Room with $40 TRILLION worth in Trade Value

They don’t want to cut aggressively to trigger more unwindings

And praying Japan won’t Raise rates , Japan has no choice but to Raise rates