Ruchir sharma alarms over AI sector amid rising treasury yields

Ruchir Sharma, Chairman at Rockefeller International and Founder and CIO of Breakout Capital, has issued a warning about the potential risks to the AI sector as Treasury yields rise. Sharma, in a recent column, cautioned that a 5% level on the 10-year yield could threaten the AI boom. As of September 28, 2026, yields are now meaningfully above that threshold, raising concerns about the implications of reaching 5.2%. The warning comes as part of a discussion on 'The Close,' where Sharma spoke with Romaine Bostick & Emily Graffeo. Sharma's analysis highlights the growing vulnerability of the AI trade to rising interest rates, which could impact investment and growth in the sector. The current yield environment is seen as a potential danger zone for companies reliant on low-cost capital. This development underscores the increasing scrutiny on the AI industry's financial sustainability amid shifting macroeconomic conditions.