The AI stock market is experiencing a turbulent phase, with debt concerns casting a shadow over the sector. CNBC Daily Open highlights the recent decline in U.S. stocks, particularly those related to AI infrastructure, such as Oracle, Broadcom, and CoreWeave. These companies are facing high debt levels to finance their multi-billion dollar deals, raising concerns among investors. Oracle, for instance, is seeking an additional $15 billion in capital expenditure and increased lease commitments for data centers, primarily to support its AI-driven growth. The stock market's reaction was swift, with Oracle's shares dropping 2.7% and CoreWeave's shares falling by 8%. Broadcom also witnessed a 5.6% decline due to margin compression worries. However, the broader market remained relatively stable, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite experiencing only minor setbacks. This suggests that the concerns are primarily contained within the AI infrastructure space. Despite the challenges, the bullish side of the story is that every AI company is optimistic about increasing revenue with more compute power. The availability of clients and the need for financial stability among compute providers like Oracle and CoreWeave are key factors in this narrative. In other news, Tesla is testing driverless Robotaxis in Austin, Texas, with CEO Elon Musk confirming the trials on his social media. The company's shares rose by 3.6% on Monday, closing at their highest this year. Additionally, the U.S. has collected $200 billion in tariffs, primarily from new levies imposed by President Trump during his second term. Ukraine and Russia are also making significant strides in peace talks, with Ukraine offering to drop its NATO bid and Russia open to Ukraine joining the EU. Lastly, CNBC Pro's screening of data from LSEG reveals the top S&P 500 stocks for 2026, with a consensus buy rating and an average price target upside of at least 35%.
