AI has real revenue. That does not make every AI investment a good investment.

Higher bond yields are changing the test for the infrastructure boom: can the cash generated justify the capital committed, the deployment delays and the risk?

In my new article, I examine why:
• Internal cash still has an opportunity cost.
• Operating cash flow and free cash flow tell different stories.
• Power availability and hardware replacement belong in the valuation.
• A technology can succeed while some of its investors earn disappointing returns.

A strong balance sheet makes investment possible. Disciplined capital allocation determines whether it creates lasting value.

Read the full analysis:
https://doraradinsights.com/en/ai-cost-of-capital-real-cash-flow

What evidence would give you confidence that the AI buildout is earning its cost of capital?

#ArtificialIntelligence #CapitalAllocation #FinancialMarkets #AIInfrastructure #Investing #DorArad