COLGeek Just imagine the garage/rummage/liquidation sales! I'll see myself out now. Reply
DS426 This uncertainty, paired with the way tech companies “hide” these liabilities, is quite concerning, as they would appear to have less long-term obligations than they actually do. This is still considered an acceptable accounting practice after Enron and Worldcom? Sarbanes-Oxley missed something kind of important here, lol. At best, this is deceptive to investors and at worst, well, the results are in the history books now: a stock market collapse. Reply
TerryLaze Marlin1975 said: File this under duh. AMD story broke today… "AMD to invest up to $5 billion in Anthropic as part of computing power deal" How much you want to bet anthropic will now "invest" billions by buying AMD hardware? Its just a circle at this point pumping up their stock till they can dump it. Sandisk went from 2300 to 1600 in the last month as insiders were dumping. Now its being pumped again and so on and on… This is a giant bubble that will not just take down a lot of tech but also banks and others "invested" in it. AMD isn't investing 5bil, they don't have 5bil to invest. What they did is promise "up to" said amount in stocks depending on how much anthropic will buy from them and how well their stock will be doing. No betting needed, this will be the same deal as they did with openAI: https://www.cnbc.com/2026/07/22/amd-anthropic-ai-chip-investment.htmlAs part of that arrangement, AMD issued OpenAI a warrant for up to 160 million shares of AMD common stock, equivalent to roughly 10% of the company, with vesting milestones tied to both deployment volume and AMD’s share price. Reply
tamalero Marlin1975 said: File this under duh. AMD story broke today… "AMD to invest up to $5 billion in Anthropic as part of computing power deal" How much you want to bet anthropic will now "invest" billions by buying AMD hardware? Its just a circle at this point pumping up their stock till they can dump it. Sandisk went from 2300 to 1600 in the last month as insiders were dumping. Now its being pumped again and so on and on… This is a giant bubble that will not just take down a lot of tech but also banks and others "invested" in it. gotta keep the circle j… going XD also arent they providing billions in hardware? Reply
alan.campbell99 Finally seeing some of this get out more in the open. At least for now it could be the big hyperscalers eg Microsoft might come out the other side of this by virtue of their primary products and services . The neoclouds will probably get screwed though with any contracts written with MS being such that MS can just walk away if agreed commitments don't get met. It's mildly frustrating how these billionaire CEOs still have a job despite clear indications they really don't have a plan, they've run out of hyper-growth ideas so they're grasping at straws. Reply
Spock_rhp DS426 said: This is still considered an acceptable accounting practice after Enron and Worldcom? Sarbanes-Oxley missed something kind of important here, lol. At best, this is deceptive to investors and at worst, well, the results are in the history books now: a stock market collapse. A proper analysis of these companies' future cash flow obligations will highlight the relationship between these likely outflows and the related revenues. Note that, in some cases, the 'debt' can be covered by delivering the company's own product or services — presumably at the usual gross margins. Accounting practice shows no balance sheet obligations until some party to a contract has partly performed their portion … which, in the situations cited, has not yet happened. This because no legally enforceable obligation has yet been incurred. {"Performance" is required to create a legal obligation in most countries.} –MBA/CPA (retired) disclosure: I own shares in five of the 'super seven' companies as well as funds (which I do not manage) that invest in some or all of them, plus other IT industry companies. Reply
PEnns So, the dream of seeing hustlers on street corners selling 5090s or similar for a dollar might come true??? Reply
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/big-tech/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/big-tech/ai-tech-companies-have-hidden-debt-worth-around-usd1-65-trillion-report-claims-amount-is-122-percent-of-debt-reflected-on-the-balance-sheets-of-alphabet-amazon-meta-microsoft-and-oracle#main
- https://www.tomshardware.com/subscription
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Informational only. No financial advice. Do your own research.