Broadcom and Oracle have just unveiled their quarterly earnings reports. While both companies surpassed revenue projections and witnessed substantial growth in artificial intelligence (AI) demand, their stock prices took a hit, igniting widespread concerns in the market regarding the return on investment (ROI) for AI infrastructure.

Oracle's fiscal year capital expenditures have soared to a staggering $50 billion, with lease obligations climbing to $248 billion and a debt-to-equity ratio peaking at an alarming 500%. Meanwhile, Broadcom projects that its AI chip sales will double on a year-over-year basis this quarter, though it anticipates a dip in its gross margin.

CoreWeave, for its part, has seen its stock price plummet by over 60% from its peak in June. After the earnings reports were made public, the stock prices of all three companies took a significant nosedive, prompting questions about the profitability of investments in AI infrastructure.