AI is a planet-sized bubble – and Microsoft's slump is a taste of the crash
7 days ago
- #tech valuation
- #investment risk
- #AI bubble
- AI is described as a planet-sized bubble that will severely impact investors when it bursts.
- Microsoft's stock slump post-earnings is seen as a warning sign of the impending AI bubble burst.
- Massive overinvestment in AI has created a significant financial threat with potential catastrophic fallout.
- Microsoft's investment in AI has surged, with net cash used in investing increasing by 95% year-on-year.
- AI-related stocks like Nvidia and Palantir have seen exponential growth, with valuations far exceeding projected revenues.
- The AI bubble is not expected to burst immediately, as investors still have cash to sustain it and technological advances remain exciting.
- Previous warnings about tech overvaluation suggest that the fallout from the AI bubble could be more painful than the dot-com bubble.