The AI Bubble Is Bursting, Experts Say

Boom Is AI hype bubble popping? Some experts say yes. The stock market has seen a rough week, with a mass selloff caused in large part by Wall Street recession fears and still-high interest rates triggering a sharp downturn. One of the hardest-hit areas of the economy was the AI industry, which saw the stock prices of Big Tech behemoths and major AI players like Microsoft, Google, Nvidia, Meta and more lurch downward. Per The Wall Street Journal, as of Monday the class of tech giants known as the “Magnificent Seven” — a list that also includes Amazon, Apple, and Tesla — had lost a collective $650 billion. The AI industry’s reaction to the market fallout is significant, given how much money companies and investors have poured into the tech. As it stands, per Vox, AI is a trillion dollar industry — and with that kind of investment pouring in, you’d maybe think that it would have the kind of economic output that could better weather a market downturn. Clearly, though, this wasn’t the case — and once again, experts are ringing the alarm bells. “Over the last year or so, the continued stellar performance from the Magnificent Seven has justified” high valuations, wrote equity William Blair equity researcher Richard de Chazal in an analysis on Friday, according to Fortune. “Now, however, when activity is only slightly disappointing, those large tech companies are being taken to the woodshed.” Make It Make Sense In other words, if a trillion-dollar industry in the…The AI Bubble Is Bursting, Experts Say

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