857
The air begins to leak out of the overinflated AI bubble
(www.latimes.com)
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 06 Sep 2024
857 points (97.3% liked)
Technology
59600 readers
2340 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
A lot of Nvidia's stock price is based on AI demand. If that evaporates, Nvidia's stock price would drop back to where it was before AI became a major profit driver. The big players will fight to keep AI business going, so I think we'd be in for a pretty soft landing there.
"Bubbles" are typically defined by stock/commodities prices. The 2000 dotcom bubble was defined by investor losses, the 2008 housing bubble was defined by housing price drops, etc. So an AI "bubble" will be quantified by stock prices of AI-related companies, like Nvidia.
I think the stock price will be at least partially supported by spending by the big tech companies trying to keep AI relevant. So I expect less of a "pop" and more of a gradual deflation.
I think the opposite is true. Stock values factor in expected future earnings, so if the market seems to be shifting, the stock price will generally drop before the disappointing earnings report comes in.