Global high rates could burst the AI bubble because big tech firms increasingly rely on debt to fund AI infrastructure expansion; high rates restrict financing and raise costs, so investors should beware of a bubble burst.
SpaceX (referred to as SPCX) is raising $40 billion, mostly via debt, to buy NVIDIA chips; its bonds are rated 3B with 30-year paper trading at an 8% yield. The stock remains above its moving averages in a bullish alignment and is technically bullish, though heavy cash burn and high rates could constrain the shares.