PremiumThe OpenAI "Tell": BofA Says The AI Bubble Will Burst With Stocks AND Yields Tumbling... Here Is The Cheapest Hedge
Last Thursday's OpenAI revenue scare lasted about one session before the dip buyers stepped back in (Oct 9). Today the AI trade cracked again, this time from the credit side, as CoreWeave imploded and dragged the Nasdaq to its worst day since June. But according to Bank of America's derivatives team, last week's single session was already enough: it offered the cleanest preview yet of what the eventual AI unwind will look like, and it doesn't look like the "stocks down, yields up" tape traders have been living with for months.
Quick recap: shortly after midday on Oct 8, the FT reported that OpenAI had told investors its annualized revenue was nearing $50 billion at the end of September, roughly $20 billion less than had been floated just weeks earlier. As we noted at the time (Oct 8), the Nasdaq promptly puked.