🧵 The AI Bubble: Why the math doesn't add up (yet).
Is AI the future? Probably. Is it a bubble? Historically speaking, yes. 📉
1. The "Dot-Com" Trap Belief in a tech shift doesn't guarantee immediate ROI. Like the late 90s, valuations assume infrastructure and mass adoption that aren't fully here yet. The vision is right; the timing is expensive.
2. Circular Valuations Big Tech is pouring billions into each other. Nvidia’s growth creates expectations for its clients (MSFT, GOOG, OpenAI). If their revenue doesn't scale to match those trillion-dollar valuations, the house of cards wobbles.
3. Where is the money?
Military? Too niche.
Gov? Defense-focused, not consumer.
Business? Cost-cutting via layoffs can't justify these caps.
The Bottom Line: AI may lead the next economy, but market prices have officially lost touch with reality. Bubbles don't kill tech, but they do incinerate capital. 🫧🔨
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🧵 The AI Bubble: Why the math doesn't add up (yet).
Is AI the future? Probably. Is it a bubble? Historically speaking, yes. 📉
1. The "Dot-Com" Trap Belief in a tech shift doesn't guarantee immediate ROI. Like the late 90s, valuations assume infrastructure and mass adoption that aren't fully here yet. The vision is right; the timing is expensive.
2. Circular Valuations Big Tech is pouring billions into each other. Nvidia’s growth creates expectations for its clients (MSFT, GOOG, OpenAI). If their revenue doesn't scale to match those trillion-dollar valuations, the house of cards wobbles.
3. Where is the money?
Military? Too niche.
Gov? Defense-focused, not consumer.
Business? Cost-cutting via layoffs can't justify these caps.
The Bottom Line: AI may lead the next economy, but market prices have officially lost touch with reality. Bubbles don't kill tech, but they do incinerate capital. 🫧🔨
#AI #Investing #TechBubble #Nvidia