Latest / Market Pulse by Orestes Capital
October 12, 2026 - AI Has a Power Problem. Rising Bond Yields Could Make It Worse.
Wall Street is betting billions on the AI revolution. But two powerful forces could threaten the economics of the boom: rising bond yields and a power grid struggling to keep up.
In today's Market Pulse, we examine the collision between tightening financial conditions and the enormous infrastructure demands of artificial intelligence.
Higher Treasury yields are raising the cost of capital just as AI investment requires unprecedented spending on data centers, electricity generation, and grid infrastructure. Meanwhile, power availability is emerging as a critical constraint that even the…
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