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Sinolink Securities posits that while AI investment does display traits reminiscent of a bubble, it carries a degree of rationality for the United States. The fragility within the AI industry supply chain has grown more pronounced, highlighting the need to address issues such as insufficient information disclosure and the weak links in capital expenditures. The prevalence of high leverage and off-balance-sheet financing has amplified risks, while financing methods characterized by the opacity of private lending and the implicit guarantees tied to off-balance-sheet liabilities demand considerable scrutiny. Additionally, the potential shifts in liquidity prompted by the 2026 U.S. midterm elections pose a significant external risk to the sustainability of this bubble.
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