Big Tech’s $300B AI guarantees raise hidden risk for investors
Morgan Stanley estimates that seven major cloud and chip companies have accumulated more than $3.1 trillion in off-balance-sheet commitments and other forms of credit support.
Morgan's estimate is probably on the low end of the off balance sheet liabilities, but that obscures the fact that their on balance sheet liabilities are at least equal and probably double or triple that number. So if the bottom falls out on the stock price, you're going to have a whole lotta hardware and a lot of expensive real estate going to auction. Even if they could get 50 cents on the dollar for the hard assets (unlikely) your shortfall is probably $2T minimum.
On the upside, hobbyists and tinkerers will be swimming in cheap memory cards.
RE