Saxo says investors are starting to distinguish between winners and losers in the AI sector.

Investment bank Saxo says the stock market is starting to differentiate between the strong and weak in AI. Saxo chief investment strategist Charu Chanana said: "In most of the previous rally, the acceleration of AI investment was enough to lift almost every asset related to the theme. Now the market is demanding more on profitability, financing and capital discipline." In a report, Saxo contrasted the recent strong results of chipmaking giants such as TSMC, Samsung and ASML with heavily indebted AI infrastructure companies such as CoreWeave, smaller rival Nebius and Oracle. CoreWeave's financing costs have climbed sharply recently, and some of the bonds the company issued this year have fallen to record lows in the secondary market. CoreWeave shares plunged 15% yesterday. Chanana wrote: "CoreWeave has become one of the clearest warning signals in the AI financing market." She said rising borrowing costs could begin to curb spending by data center builders: "Investors are increasingly unwilling to fund the growth of AI infrastructure at any cost."