US Stock Market is feeling AI investments pressure but check list of stocks that are jumping amidst Artificial Intelligence spending fears

US Stock Market indexes Nasdaq and S&P 500 are under pressure due to investor concerns about rising costs of AI infrastructure buildout and timeline for returns. Several companies have tapped the bond market to fund their hefty AI investments, fueling concerns that higher borrowing costs could make such spending harder to justify. However, Wall Street's top alternative asset managers are betting on the AI boom by owning the infrastructure behind it and locking in rent through long-term leases.

The AI spending spree across data centers, power, equipment and software is one of the biggest investment waves in history, rivaling those that accompanied the advent of the internet and the expansion of railways.

AI Spending


Ares estimates AI-related capex demand at just over $5 trillion through 2030, including roughly $2 trillion for physical data center buildings and adjacent power generation and transmission infrastructure.

The concerns around AI spending coincide with expectations that the Federal Reserve would raise interest rates by more than 50 basis points by mid-2027, according to LSEG data, even after the central bank held rates steady earlier this week, as expected. Analysts largely viewed the decision as a "pause", with many expecting the Fed to resume tightening as soon as December.

Wall Street Stocks that are Rising

With concerns growing that debt-laden neocloud companies at the heart of the AI infrastructure boom could default and that massive spending on the sector may fail to deliver adequate returns, industry executives are also emphasizing their focus on high-quality, long-term tenants.

Shares of alternative asset managers rose. Blue Owl stock price was up 6.5 per cent, Ares Management share price gained 2 per cent. KKR share price jumped 2.5 per cent, and Blackstone rose 2.5 per cent. Apollo Global stock price was up 3.7 per cent.

How will These Companies Make Benefits

Data centers have become a critical part of the AI boom, housing the servers and computing equipment needed to train and run AI models.

As the world's biggest technology companies race to expand computing capacity, demand for such facilities has surged, creating what industry executives have described as a generational opportunity for alternative asset managers.

Blue Owl said it has more than 130 data centers operating or under construction, representing nearly 14 gigawatts of leased and owned capacity, with another 21 gigawatts in its pipeline.


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"We are not making a bet on AI when we invest in data centers," Blue Owl CFO Alan Kirshenbaum said, adding that the company does not expect demand for computing power to decline. "We are taking Microsoft, Amazon, Meta, credit risk."

Ares Management said its data center development strategy focuses on metropolitan areas including Tokyo, Osaka, London and Sao Paulo, pre-leasing projects to investment-grade hyperscalers under 12- to 15-year leases with no termination rights and inflation escalators.