In at least one corner of the artificial intelligence market, sentiment has turned decidedly negative.
Broadcom , CoreWeave and Oracle , three companies intimately tied to the AI infrastructure buildout, all had another rough day on Wall Street on Monday after selling off sharply last week.
While the three stocks are all still solidly up for the year — CoreWeave held its market debut in March — the most recent trend suggests that investors are concerned about whether the returns on investment will ever justify the level of spending taking place.
"It definitely requires the ROI to be there to keep funding this AI investment," Matt Witheiler, head of late-stage growth at Wellington Management, told CNBC's "Money Movers" on Monday. "From what we've seen so far that ROI is there."
Witheiler said the bullish side of the story is that, "every single AI company on the planet is saying if you give me more compute I can make more revenue."
Still, the market was displeased last week with quarterly earnings reports from chipmaker Broadcom and cloud infrastructure supplier Oracle, even though both companies beat on revenue and issued forecasts showing that AI demand is soaring.