Rising financing costs pressure AI stocks, Siebert Financial says
QQQ•Siebert Financial said rising AI financing costs are prompting valuation reassessments. Oracle’s $20 billion offering includes $10 billion in common stock at an 11% discount and $10 billion in senior notes yielding up to 8.65%.
1. Funding costs in focus
Siebert Financial said AI financing risks are driving a reassessment of valuations and greater scrutiny of companies reliant on equity issuance or expensive borrowing. Oracle announced a $20 billion capital raise five days after setting that funding ceiling through fiscal 2030. The offering comprises $10 billion in common stock at an 11% discount and $10 billion in senior notes yielding up to 8.65%.
2. Market moves
The Nasdaq 100 closed 10.4% below its October 6 record, while the semiconductor index lost 12% over three sessions. Marvell’s $115 billion all-stock acquisition of Lumentum drew a negative market reaction: Marvell fell 12.7% and Lumentum declined 18.6%.
