Gildas Omont @MaisonHarkonnen: "AI Bubble Wobble: Is the..."

France

AI Bubble Wobble: Is the Market About to Burst? Investors are growing skeptical about the sustainability of the artificial intelligence boom. After months of record highs, the $NSDQ100 dropped by 2.1% yesterday, echoing repeated warnings about overinflated valuations. Even figures like Michael Burry—famous for predicting the 2008 subprime crisis—are taking bearish positions on $NVDA (NVIDIA Corporation) and $PLTR (Palantir Technologies Inc.) fueling concerns. Yet, the fundamentals remain strong: tech stocks now account for 45% of the $SPX500 and generate 38% of its profits, far more than in 2000. Disappointing earnings from Arista, Super Micro, and $AMD (Advanced Micro Devices Inc) last night could extend the correction, but there’s no clear sign of an impending crash. In Asia, Japan and South Korea took a hit, while Europe opened with slight losses. Key factors to watch: the services PMI in Europe and the U.S., and the impact of American political tensions on markets. The question lingers: is this just a temporary dip, or the start of a deeper downturn?