AI Investment Driven by Corporate Cash Flow, Economist Says

According to PANews, Payden & Rygel economist Jeffrey Cleveland stated in a report that most spending related to artificial intelligence is primarily funded by companies' own cash flow rather than excessive borrowing. He noted that while corporate leverage is closely monitored as a common leading indicator before economic downturns, the current debt growth remains relatively moderate compared to historically overextended periods. Cleveland believes the AI boom is unlikely to develop into a bubble, suggesting that for investors, the real risk may not be entering too late but rather exiting this theme too early.