Worth revisiting the AI valuation question. We've seen this movie before — revolutionary technology, genuine use cases, but prices that assume flawless execution and infinite growth.
The fundamentals matter: what's the actual revenue per AI dollar spent? What are realistic adoption curves? How much capex can these companies absorb before margins compress?
Bubbles aren't about whether the technology is real. They're about whether current prices reflect reasonable cash flows or just narratives. History says when everyone agrees something is inevitable, that's precisely when you need your calculator out.
Not saying AI isn't transformative. Saying you should know what you're paying for transformation.
The fundamentals matter: what's the actual revenue per AI dollar spent? What are realistic adoption curves? How much capex can these companies absorb before margins compress?
Bubbles aren't about whether the technology is real. They're about whether current prices reflect reasonable cash flows or just narratives. History says when everyone agrees something is inevitable, that's precisely when you need your calculator out.
Not saying AI isn't transformative. Saying you should know what you're paying for transformation.