Adi Shahaf, Mizrahi Tefahot: "The large investments in AI infrastructure - do not make the field a bubble"

Adi Shahaf, head of the financial division at Mizrahi Tefahot, estimated at the Globes conference that the growth in government debt and financing of AI infrastructure will dictate the direction of stock markets in the coming year. According to him, the large investments do not make the field a bubble. In Israel, he forecasts fundraising of about NIS 200 billion by 2027.

Adi Shahaf, head of the financial division at Mizrahi Tefahot Bank, estimated at the "Seeing Beyond the Trend" conference of Globes in collaboration with Altshuler Financial that the growth in government debt and the financing needs of artificial intelligence infrastructure will dictate the direction of stock markets in the coming year. According to him, the US debt stands at over $40 trillion, and the reduction of holdings by Japan and China in US government bonds raises risks. Shahaf distinguished between the short-term inflationary effects of AI, which may raise prices due to investments in data centers and demand for electricity, and the long term where the technology is expected to lower costs. In Israel, he forecasts fundraising needs of about NIS 200 billion in 2027 for debt repayment and deficit financing. Shahaf emphasized that the large investments in AI infrastructure do not make the field a bubble, as previous revolutions were also financed by debt.

Adi Shahaf, Mizrahi Tefahot: "The large investments in AI infrastructure - do not make the field a bubble"