Featured Articles
Last week, we witnessed one of the sharpest market drops in months, and this time, it wasn’t because of inflation, war, oil, or central banks lighting the fuse. It was something far stranger: fears that the AI boom has officially crossed into bubble territory.
On both sides of the Atlantic, markets bled red.
The U.S. tech-heavy Nasdaq was hit hardest, with major European indices following in lockstep.
And the stocks that led the selloff? Exactly the names investors were celebrating only a few weeks ago …
The AI darlings. And they lost tens of billions in market value in a matter of hours. But it’s not those losses that represent the bigger story here. No, the bigger story is that investors are finally asking whether the growth story got ahead of reality.
Spoiler alert: It did.
While AI demand is very real and continues to grow rapidly, legitimate concerns are piling up:
- Runaway valuations on chipmakers, model developers, and cloud infrastructure companies
- Slowing revenue expectations after months of torrid hype
- Massive capex burn that even the largest tech firms can’t sustain forever
- Early cracks in AI monetization – lots of usage, far less profit
- Competition escalating faster than projected
The question for a lot of investors now, though, is: are we actually in an AI bubble?
To be clear, AI is transformative. But tech bubbles aren’t always about the value of technology. Typically, they’re about unrealistic expectations.
Last week’s selloff wasn’t about AI’s usefulness. It was about timelines and profitability. And here’s the truth that no one wants to say out loud …
Companies are spending billions building AI infrastructure long before we know how much money AI will reliably make. That imbalance can’t last forever, and investors are starting to price that risk in – suddenly, aggressively, and all at once.
This is the moment where we have to separate hype from substance. So here’s how I see it …
- Companies with real, defensible AI revenue will survive the volatility.
- Companies burning cash to “chase the narrative” will get exposed.
- Infrastructure – power, cooling, chips, storage – remains essential, but the market will demand proof of sustainable demand, not just big promises.
To be frank, AI didn’t actually cause the selloff. Investor expectations did.
What we’re seeing is a long-overdue reset. Not the death of the AI revolution.
To be fair, every technology boom goes through this phase.
We saw this in the dot-com era, in renewable energy, and in mobile computing. All of these saw massive shakeouts before the true leaders emerged. AI is now entering that same sorting period.
Indeed, the bubble fear is real, but the opportunity on the other side? Even bigger.
Invest accordingly.
We are not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authorities. Further, our owners, employees, agents are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authorities.
The sender of this email makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.
The content on any of our websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors.
The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.
Disclaimer: Past performance is no guarantee of future performance. This product is for educational purposes only. Practical application of the products herein are at your own risk and our partners, representatives and employees assume no responsibility or liability for any use or mis-use of the product. Please contact your financial advisor for specific financial advice tailored to your personal circumstances. Any trades shown are hypothetical example and do not represent actual trades. Actual results may differ. Nothing herein constitutes a recommendation respecting the particular security illustrated.