Is AI Still a Bubble, or Is the Market Just Getting More Selective?
The November 5 sell-off showed how quickly sentiment can change. The Nasdaq dropped 5.5%, with chipmakers and data center stocks taking a major hit.
But here's what I find interesting: the market isn't necessarily questioning whether AI has a future. It's questioning how much infrastructure the industry can realistically build, how fast it can do it, and whether the returns will justify the spending.
Now Anthropic is heading toward its IPO with a valuation target around $1.3–1.4 trillion, well below the $2 trillion expectations reported earlier.
That doesn't automatically mean AI is losing its momentum.
I think regulation could slow things down, especially around data centers, energy consumption and permits. But slowing expansion isn't the same as killing demand.
The bigger risk may be valuation getting too far ahead of actual profitability.
My take: AI isn't necessarily a bubble, but parts of the AI trade may have been priced like one.
The Anthropic IPO could be an interesting reality check for the entire sector.
What do you think?
#AnthropicIPO
The November 5 sell-off showed how quickly sentiment can change. The Nasdaq dropped 5.5%, with chipmakers and data center stocks taking a major hit.
But here's what I find interesting: the market isn't necessarily questioning whether AI has a future. It's questioning how much infrastructure the industry can realistically build, how fast it can do it, and whether the returns will justify the spending.
Now Anthropic is heading toward its IPO with a valuation target around $1.3–1.4 trillion, well below the $2 trillion expectations reported earlier.
That doesn't automatically mean AI is losing its momentum.
I think regulation could slow things down, especially around data centers, energy consumption and permits. But slowing expansion isn't the same as killing demand.
The bigger risk may be valuation getting too far ahead of actual profitability.
My take: AI isn't necessarily a bubble, but parts of the AI trade may have been priced like one.
The Anthropic IPO could be an interesting reality check for the entire sector.
What do you think?
#AnthropicIPO