Yes, they are all profitable companies with established products. But that part of their business is just a part of their valuation. AI slop is the rest. NVidia is trading at a P/E ratio of over 50. Do you think they can sustain that once people stop buying AI chips?
And those are just the largest companies. There are smaller companies it’s riding the AI bubble which will simply cease to exist soon (along with all the investment in them.)
The NASDAQ dropped something insane, like 80%, when the dotcom bubble crashed. The S&P is different and more diversified, so it won’t crash so hard, but I think 25% is as good a guess as any.
Yes, they are all profitable companies with established products. But that part of their business is just a part of their valuation. AI slop is the rest. NVidia is trading at a P/E ratio of over 50. Do you think they can sustain that once people stop buying AI chips?
And those are just the largest companies. There are smaller companies it’s riding the AI bubble which will simply cease to exist soon (along with all the investment in them.)
The NASDAQ dropped something insane, like 80%, when the dotcom bubble crashed. The S&P is different and more diversified, so it won’t crash so hard, but I think 25% is as good a guess as any.