Is the A.I. Boom Turning Into an A.I. Bubble?
12 days ago
- #Technology
- #AI
- #Stock Market
- Jensen Huang, CEO of Nvidia, met with Donald Trump to discuss increasing U.S. chip production, leading to Nvidia's stock hitting an all-time high.
- The article compares the current AI boom to the dot-com bubble, noting similarities but also differences in profitability and market fundamentals.
- Goldman Sachs analysts argue that the current tech surge is not a bubble, citing strong profit fundamentals of companies like Nvidia and the 'Magnificent Seven'.
- Palantir Technologies and Figma's IPO are highlighted as examples of dot-com-like exuberance in the current market.
- The article discusses the potential for an AI bubble, noting the ready availability of early-stage funding and investor excitement about generative AI.
- Differences between the current AI boom and the dot-com era include the dominance of Big Tech and the challenges for small startups in the AI economy.
- The article concludes with a cautionary note about the unpredictability of the AI boom and the risks of investing in infrastructure companies like Nvidia.