Artificial intelligence-related stocks rallied for a second consecutive session, supported by the announcement of $63 billion in financing for Anthropic to purchase Broadcom hardware. Jim Cramer argued that the renewed optimism does not resolve the data center sector’s financing challenges, particularly the rising debt burden of neoclouds and high bond yields, which have reached as much as 15% for CoreWeave. He also questioned the deal’s reassuring nature because Anthropic would be borrowing from lenders arranged by Broadcom to acquire Broadcom’s technology. The decline in the 10-year Treasury yield below 5% and in oil prices could provide relief, but the Federal Reserve’s decision, the upcoming midterm elections and potential Middle East flare-ups could reverse that improvement.
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