Jeff Gundlach says making AI chips an asset class looks like a market top
Jeff Gundlach has criticised Nvidia’s plan with six asset managers to mobilise more than $500bn for AI infrastructure, asking why assets of unknown life are collateral for long-term debt. Mark Cuban compared chips as an asset class to crypto.
Jeff Gundlach thinks Wall Street has told on itself. “Assets of unknown life as collateral for long term debt?” the DoubleLine chief executive wrote on X, saying Nvidia’s new financing consortium “will not likely age well.”
He is talking about a large arrangement. Nvidia signed agreements last week with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to build financing platforms intended to mobilise more than $500bn so customers can buy access to its chips.
His analogy is deliberately undignified. Gundlach compared it to issuing 30-year asset-backed securities against warehouses of bananas, even “newly engineered bananas of unknown life.”
Underneath the joke is a duration...
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