Tag: Margin Debt

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Is the US Stock Market’s Massive AI Rally Built on a Foundation of Borrowed Money?

The global artificial intelligence (AI) boom has propelled stock markets in the US, South Korea, Taiwan, and Japan to unprecedented record highs. Driven by an insatiable investor appetite for large language model (LLM) developers, semiconductor giants, and chip manufacturers, the rally has taken a highly speculative turn as market participants increasingly turn to leverage to maximize their returns.