HSBC CEO Georges Elhedery says AI is transformational and will help re-engineer the bank, but investors must be selective about data center investments. He advised examining the quality of tenancy agreements and contract pricing, as some data center deals may be more challenging than others. HSBC, headquartered in London, was ranked by S&P Global as the seventh-largest bank in the world last year with assets close to $3 trillion, and it acts as both a financier and an operator of data centers. McKinsey estimates global data center spending could reach $7 trillion by 2030, while Big Tech increasingly relies on private credit and debt to fund the build-out. JPMorgan Chase estimates $4.1 trillion in AI-related debt will be issued by the end of the decade, and Mohamed El-Erian warned that competition for financing between governments and AI companies is pressuring bond markets.
Summary written by Upside AI from the original article. Read the source for full details.
Keywords
HSBCAI investmentdata centersNVDA
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/19/2026 | 217.09 |
| Change that session | +1.38% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Top HSBC strategist has a warning for retail investors chasing the AI rally
- Data centers are now the largest financial bet in US history
- Shares in this data centre company are down 40 % as investors lose faith in the AI story
NextDC shares collapsed 40% after the Australian data centre builder said delays at its Melbourne M3 site, driven by local community concerns and Jemena's pause on 22-metre power poles in Footscray, would leave revenue short of forecasts. The article says investors are now questioning the long-term viability of data centres, pointing to Firmus cancelling its listing on the Australian stock exchange, Nscale struggling to attract buyers for a Wall Street listing, and CoreWeave shares falling 15% in one day. Investment in AI infrastructure is expected to reach US$10 trillion (A$14.25 trillion) by 2032, while higher borrowing and construction costs and short-lived AI chips add pressure. Community opposition over noise, visual impact and potential rises in electricity and water prices is also eroding social licence, with New South Wales data centres potentially consuming up to 25% of Sydney's daily water demand within a decade.
- Nvidia turns the AI factory into a product , and agents into the workload
At GTC Berlin, Nvidia CEO Jensen Huang focused on deployment speed, power, security and enterprise data, describing AI as a manufacturing industry. Nvidia introduced DSX POD, a containerized reference design for complete Vera Rubin AI factories that it says can be deployed at a prepared site in as little as 14 days, versus six months, though the figure assumes the site is ready. Huang said a 1-gigawatt AI factory costs about $50 billion and earns roughly $40 billion a year, so a one-quarter delay loses about $10 billion in revenue. The DSX platform adds DSX Flex, which automates how data centers defer work for grid operators, and cooling that saves an estimated 54 million liters of water per day at 2 gigawatts. Nvidia also launched an OpenShell Reference Architecture for running agents safely and expanded its Agent Toolkit.
- Nvidia Has a $10 Billion Data Center Quick-Fix. The Stocks Set to Benefit.
- Michael Burry Is Shorting Nebius. SpaceX Just Said Its AI Chips Pay for Themselves in Under a Year.
SpaceX CFO Bret Johnson said on the third-quarter call that new AI compute deployments currently pay back in less than a year, with pricing slightly above the high end of the $30 to $50 per watt range. Elon Musk said a six-month payback next year is not impossible, but he was not saying it will happen, and because SpaceX leases at effectively the spot market rate, the payback depends on spot prices holding. Michael Burry is shorting Nebius, which fell 14.53% over the past week and 20.9% over the past month, while CoreWeave fell 17.83% and 21.41%. The article argues that both neoclouds carry heavy debt before revenue arrives, making them vulnerable if AI cloud prices slip, and both report third-quarter results in the coming weeks. SpaceX's figures are management statements without formal backing, and the company did not disclose its cost per watt, utilization or depreciation assumptions.
Related markets
Latest news
- Bank Profits Surge
The 9-month 2026 results show many banks continued to grow profits, with some posting record quarterly earnings. VPBank's pre-tax profit reached nearly VND 30,000 billion, up nearly 47%, equal to its full-year 2025 result and about 72.4% of its 2026 plan; Q3 pre-tax profit topped VND 11,000 billion. Techcombank posted VND 28,900 billion (up 23.7%), while LPBank reported VND 10,421 billion (up nearly 9%). SSI forecasts pre-tax profit of its monitored banks to rise 19.5% in 2026 before slowing to 15.4% in 2027, pressured by narrowing net interest margins and rising credit risk provisions. It also expects system-wide credit growth of 16-17% in 2027 and 17.9% for the monitored banks.
- World's Largest Gold Fund Dumps Over 10 Tonnes of Gold as Prices Slide
SPDR Gold Trust, the world's largest gold fund, continued net selling of nearly 12 tonnes of gold in the 22/10 session, bringing total sales over 2 sessions to nearly 15 tonnes and cutting its holdings to about 1,046 tonnes. Spot gold fell more than 2.8% to around USD 4,025 per ounce at the close of 22/10, and briefly dipped below USD 4,000 per ounce in the morning session of 23/10. Tensions in the Middle East pushed crude oil prices higher, raising concerns about inflation and further Fed tightening, and gold has still not attracted sustained safe-haven demand even as US Treasury yields fell. US September CPI rose 0.6% month on month and 3.7% year on year, while PPI rose 1.3% and 6.3%. Markets price about an 84% chance the Fed holds rates steady at its 27-28/10 meeting and a 16% chance of a 25 basis-point increase; September PCE data due on 29/10 is the next key factor to watch.
- Gold Prices Continue to Fall
On the morning of 23/10, domestic gold prices kept falling, with SJC bar prices varying by seller and the premium over world gold widening. Công ty TNHH Vàng bạc đá quý Sài Gòn listed SJC bars at VND 139-142 million per tael (buy-sell), down VND 300,000; Phú Quý was at VND 138-141.8 million, down VND 500,000; and Mi Hồng at VND 140-141.5 million, down VND 800,000. Gold rings also fell by varying amounts, with DOJI at VND 138-142 million and Phú Quý at VND 138-141 million per tael. World gold dropped USD 129 to around USD 3,992 per ounce, equal to about VND 125.3 million per tael, leaving SJC bars about VND 16.7 million per tael above the world price. The State Bank's central rate was set at 25,627 VND/USD, down 5 dong, while Vietcombank quoted 25,660-26,040 VND/USD (buy-sell).
- Company Linked to Billionaire Pham Nhat Vuong Announces Major Good News
VEFAC (ticker VEF), a Vingroup subsidiary, posted Q3 net revenue of nearly VND 77 billion, up 67% year on year, but a gross loss of about VND 27 billion as cost of sales from its exhibition business exceeded revenue. Q3 profit rose mainly thanks to a gross gain of about VND 65 billion from transferring some schools in a project to a partner, while financial income reached over VND 388 billion, mostly from loan and investment income. For the first nine months of 2026, after-tax profit was nearly VND 865 billion, down about 94% from VND 15,418 billion in the same period of 2025, as the prior year included large gains from transferring part of the Vinhomes Global Gate project. As of 30/9/2026, total assets stood at over VND 31,905 billion, up 36% from the start of the year, while total liabilities exceeded VND 24,364 billion, with short-term customer advances rising from VND 411 billion to over VND 8,373 billion.
- Lotte and Phat Dat Officially Break Ground on VND 60,000 Billion Mega Project in Thu Thiem 'Golden Land'
A joint venture between Lotte Group (South Korea) and Phát Đạt (HoSE: PDR) officially broke ground on 23/10 on Lotte Eco Smart City Thu Thiem in the Thu Thiem New Urban Area, HCMC, with total investment of about VND 60,000 billion. The project covers nearly 7.5 ha and will combine Grade A offices, retail, services, accommodation and housing, adjoining the central plaza and central lake of Thu Thiem. Phát Đạt holds 35% of Lotte Properties HCMC, the project developer, and will develop the housing blocks along with two towers (2-1 and 2-3) with about 219,722 m2 of floor area, while Lotte handles block 2-5. Lotte Properties HCMC paid VND 17,569 billion in land-use fees on 31/7/2026, and Phát Đạt completed its VND 7,666 billion payment to take its 35% stake. MB is funding all of Phát Đạt's capital contribution, while VietinBank and BIDV also support the project.
- International Business : Global stocks nosedive as Meta dents AI optimism
Global stocks retreated as tech earnings failed to ease concerns about the AI outlook, with MSCI's All-World index set for its largest daily fall in two weeks, down 0.4 per cent. Meta beat third-quarter revenue expectations, but its plan to issue non-voting stock revived worries about its mounting capital commitments, and a New Mexico judge ordered it to pay a $25 billion penalty in a data privacy case. Brent crude rose nearly 3% to $112 a barrel, near a five-month high, after more Houthi attacks in Saudi Arabia raised supply risks. Investors moved into government bonds, pushing the US 10-year yield down to 5.05%, below France's for the first time in 13 years, while French yields have climbed above 5% amid concerns over social unrest and debt. The France-Germany 10-year spread reached 177.7 basis points, its widest since 2011, while gold fell 1.8% to $4,070 an ounce.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.