The AI Bubble May Shrink, Not Burst
This summer has been turbulent for artificial intelligence stocks, as China’s advances in the field and other factors have driven down U.S. equities, particularly Nvidia and Micron. Pessimists quickly declared that the A
This summer has been turbulent for artificial intelligence stocks, as China’s advances in the field and other factors have driven down U.S. equities, particularly Nvidia and Micron. Pessimists quickly declared that the AI bubble was on the verge of bursting.
Their concerns are not entirely unfounded. Roughly 45% of the market capitalization of the S&P 500 index is tied to AI-related stocks, while the seven largest U.S. technology companies account for more than a third of the index’s value. Valuations have reached levels reminiscent of the dot-com bubble burst in 2000. …
Translated by Qiyas from الجريدة — Original source
