A WSJ report flagging $3 trillion in off-balance-sheet AI commitments triggered de-risking that sent GE Vernova and FTAI Aviation down between 6 and 7 percent. Bloom Energy and Vertiv dropped 10% and 7% as hyperscaler capex doubts caused the entire BTM basket to sell off regardless of individual fundamentals. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Caterpillar didn't make the cut.
Grab the names FREE today. Shares of behind-the-meter power names are selling off in unison at midday Tuesday. FTAI Aviation (NASDAQ:FTAI) is down 6%, GE Vernova (NYSE:GEV) is off 6%, and Caterpillar (NYSE:CAT) is lower by 5%.
The pain is broad across the group. If you're wondering why names you have in this space are red, there's little 'company specific' news. Instead, we'll walk through the big story lines impacting AI stocks today and then see how they're impacting companies involved in the behind-the-meter AI buildout.
The trigger is a coordinated de-risking out of AI-levered industrials after a Wall Street Journal analysis flagged the scale of hyperscaler power commitments disclosed in SEC filings. Per the report, "Nine top tech companies had some $3 trillion of off-balance-sheet commitments mostly related to AI, according to a Wall Street Journal analysis of footnotes in their most recent securities filings. Those obligations are growing faster than traditional 'capex,' which totaled about $600 billion over the past year they reported, and were about triple what the companies owe under their outstanding leases and long-term borrowings." Weekend model-maker disclosures also underwhelmed Silicon Valley bulls.
Anthropic said annualized revenue reached $65 billion at the end of July, while OpenAI has said its ARR recently hit $40 billion. Big numbers, but softer than the whispers circulating in venture circles. The 30-Year Treasury hit a 19-year high today, and the 10-year sits at 4.68%.
Higher discount rates compress the present value of long-duration BTM backlogs. The result is a broad sell-off across anything AI hardware. Many software names are seeing rotation into them while defensive industries like healthcare, financials, and consumer staples are rising on the day.
Extract — continue reading at the source.
