AI Stock Prices: Can Anything This Good Last?
The frenzy in artificial intelligence stocks has pushed valuations and ratios to unprecedented levels.
That success alone is the reason many investors fear a bubble. As today’s Oracle of Finance sees it, these bubble fears are an emotional response that may be impervious to logic and numbers.
No amount of citing fundamentals is going to help put to rest the underlying human concern that nothing this good can last. Exponential growth is never sustainable and technology is prone to cycles as much, if not more, than any other industry. And this AI run has been unprecedented.
— Ian King
King, a long-time tech reporter at Bloomberg, points out that a new eye-popping statistic seems to arrive every day.
Here’s one: NVIDIA‘s 2025 revenue will be equivalent to more than one-third of the total revenue of the entire industry in 2024.
King says he is deluged with calls from people asking whether he thinks it’s a bubble.
Even though he can see that investor anxiety is inflating just as quickly as P/E ratios, he doesn’t know the answer.
“One insight I can offer,“ King says. “Journalists don’t know either. All we can do is point you to the facts.”
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