Wall Street is betting trillions of dollars on artificial intelligence, and now some investors are rushing to reverse the layout. So far, this deal has been a consistent winner. Market optimism about the potential of AI to transform the economy has boosted the stock prices of tech giants, utility companies, and chip makers, while spawning speculation in other sectors of the market. Recently, many optimistic expectations have been tested by reality, and companies large and small have failed to meet market expectations. Currently, investors are studying how to prevent the risk of a sharp reversal in the market. Investors and tech executives are using options and credit default swaps to avoid risk. According to the Chicago Options Exchange global market data, the size of options contracts linked to the new cloud vendor CoreWeave soared to a record high this month and remained high thereafter. Meanwhile, data from bond data service provider Solve shows that in the past month, debt default protection costs for hyperscale cloud vendors such as Amazon, Alphabet, Microsoft, Meta, and Oracle have risen, reaching the highest level since 2021.

Wall Street is betting trillions of dollars on artificial intelligence, and now some investors are rushing to reverse the layout. So far, this deal has been a consistent winner. Market optimism about the potential of AI to transform the economy has boosted the stock prices of tech giants, utility companies, and chip makers, while spawning speculation in other sectors of the market. Recently, many optimistic expectations have been tested by reality, and companies large and small have failed to meet market expectations. Currently, investors are studying how to prevent the risk of a sharp reversal in the market. Investors and tech executives are using options and credit default swaps to avoid risk. According to the Chicago Options Exchange global market data, the size of options contracts linked to the new cloud vendor CoreWeave soared to a record high this month and remained high thereafter. Meanwhile, data from bond data service provider Solve shows that in the past month, debt default protection costs for hyperscale cloud vendors such as Amazon, Alphabet, Microsoft, Meta, and Oracle have risen, reaching the highest level since 2021.