This week, stock slumps, pulled IPOs and rising spreads on credit default swaps have set the stage for earnings reports from the world's largest cloud providers.
The decline in technology shares has been driven by a combination of factors, including increased competition among new cloud entrants, or “neoclouds”, and heightened credit risk as reflected in widening credit default swap spreads.
Solidigm, a semiconductor company, pulled its initial public offering after a review of market conditions, adding to the list of high‑profile IPO cancellations.
Investors are watching the earnings of hyperscalers such as Amazon Web Services, Microsoft Azure and Google Cloud, as the market environment could influence their profitability and growth prospects.
The combination of market volatility and credit concerns underscores the challenges facing the AI build‑out, as companies look to balance investment in new technologies with financial prudence.
<small>Source: CNBC — read the original story there.</small>