The warning signs the AI bubble is about to burst
telegraph.co.uk
The warning signs the AI bubble is about to burst
1–10 of 86 posts
Re: The warning signs the AI bubble is about to burst
#2Re: The warning signs the AI bubble is about to burst
#3Every time I see an article like this a quote comes to mind:
"The market can stay irrational longer than you can stay solvent." -- John Maynard Keynes
Predicting when a bubble is going to burst is close to impossible.
Re: The warning signs the AI bubble is about to burst
#4The Fed is giving indications that rates will be cut. The bubble will not be bursting yet if that happens
If NVIDIA crashes, I can easily see the gov saving it in some way (either massively pumping liquidity or bailing it out). It’s too critical to the US at this point
Re: The warning signs the AI bubble is about to burst
#5Every time I see an article like this a quote comes to mind: "The market can stay irrational longer than you can stay solvent." -- John Maynard Keynes Predicting when a bubble is going to burst is close to impossible.
But it feels like it’s about to pop!
It really is hard to stay objective as predictors all seem to point one way.
Re: The warning signs the AI bubble is about to burst
#6I think the biggest sign of a potential crash is that Meta has frozen AI hiring. Such a quick reversal from just a few months ago.
Re: The warning signs the AI bubble is about to burst
#7Every time I see an article like this a quote comes to mind: "The market can stay irrational longer than you can stay solvent." -- John Maynard Keynes Predicting when a bubble is going to burst is close to impossible.
I mean a bursting bubble is what? A C-Suite pulling the valve shut or a company going under? It seems like the bubble has burst already then when Zuckerberg and Altman started decrying it earlier in the week. Now we just wait for all the smaller companies to either fold. For the larger companies the bubble will probably deflate slowly rather than burst.
There are no market indicators if the actual burst is at the whim of a human. Being that Meta can probably bleed for a while before seeing real losses after a burst. All they have to do is be the first one to stop growing while the bubble deflates.
Re: The warning signs the AI bubble is about to burst
#8The article claims that:
a) AI is a bubble
b) It's about to burst
This is based on a study that "just 5pc of integrated AI pilots are extracting millions in value, while the vast majority remain stuck with no measurable P&L [profit and loss] impact".
I think the conclusions (while possibly true) are not supported here. By comparison, in the stock market in general, just a handful of stocks provide most of the returns over the past few decades. This does not mean the stock market is a bubble or about to burst.
Re: The warning signs the AI bubble is about to burst
#9cool time to buy some burst protectors
Re: The warning signs the AI bubble is about to burst
#10Every time I see an article like this a quote comes to mind: "The market can stay irrational longer than you can stay solvent." -- John Maynard Keynes Predicting when a bubble is going to burst is close to impossible.
Fortunately, there are open-end put options, so the timing doesn't have to be THAT accurate.
EDIT: to be precise: I mean open-end turbo put, which have no expiration but a knock-out.