#AIStocksWhatNext Why the AI-stock boom could end in a crash? 📉
Despite the euphoria around Nvidia and record spending by tech giants on computing, I’m taking a bearish stance on AI 🐻. We’re seeing signs of a bubble, where expectations are far detached from reality. Companies spend billions buying chips and building data centers, but where is the actual monetization of these technologies that could justify such investments?
The most alarming signal is that the AI industry leaders themselves are calling for slowing down the development of these technologies. They clearly understand the risks and that the current models are running into a technological dead end due to a lack of high-quality data for training.
As for Donald Trump’s plans to create an “AI Force” and claims that AI will account for 25% of the U.S. GDP, it looks like election-year populism. Government intervention and the militarization of technology will increase tensions with China, but they won’t save the sector from a market correction. The current rise in AI stocks is hype, and profit-taking is already not far off.
While the crowd is buying, I’m looking for spots to open shorts on overheated assets.
What do you think? Is it time to short this bubble, or will the rally continue against all logic?
Despite the euphoria around Nvidia and record spending by tech giants on computing, I’m taking a bearish stance on AI 🐻. We’re seeing signs of a bubble, where expectations are far detached from reality. Companies spend billions buying chips and building data centers, but where is the actual monetization of these technologies that could justify such investments?
The most alarming signal is that the AI industry leaders themselves are calling for slowing down the development of these technologies. They clearly understand the risks and that the current models are running into a technological dead end due to a lack of high-quality data for training.
As for Donald Trump’s plans to create an “AI Force” and claims that AI will account for 25% of the U.S. GDP, it looks like election-year populism. Government intervention and the militarization of technology will increase tensions with China, but they won’t save the sector from a market correction. The current rise in AI stocks is hype, and profit-taking is already not far off.
While the crowd is buying, I’m looking for spots to open shorts on overheated assets.
What do you think? Is it time to short this bubble, or will the rally continue against all logic?