Tom Lee: AI debt does not mean the bubble will necessarily end badly.

BlockBeats news, September 15 — Fundstrat co-founder Tom Lee said that debt concerns surrounding AI infrastructure financing are heating up, but the expansion of growth industries was never going to rely entirely on equity capital, and AI companies increasing debt financing does not necessarily mean their business models are failing or that a bubble is about to burst.

Tom Lee believes AI will become the "third major engine" of economic growth. Citing Bitcoin's rise from less than $1,000 to about $80,000, he said investors tend to underestimate the long-term value and speed of diffusion of new technologies in their early stages. Under this framework, Nvidia, semiconductors, storage, as well as energy and power assets constrained by computing expansion, will remain the more attractive exposures in the AI investment chain. The market will next focus more on whether the related debt can be converted into sustained revenue, cash flow and productivity gains.