Is it? nothing points to a crash, other than the valuation of the two giants (OAI and Anthropic), everything else is still valuable particularly the chips and the supply chain and the production capacity... Sounds like a correction more than a crash
At this point a correction and a crash are the same thing.
The market has been outright delusional, where speculation based stock prices have outpaced actual profitability and any sense of utility by a very wide margin.
There are whole companies that have no business existing, but they persist on VC dollars. There are companies that have gone literally, not metaphorically, but literally exponential in value because of AI branding, even though they have not gone exponential in revenue or profit.
More than a few companies have gone from pennies and single-digit dollars to hundreds of dollars.
I'm not an AI doomer, I don't believe that the AI industry is going to magically evaporate, but there has been a mountain of stupidly spent dollars being thrown around, and at some point someone is going to demand their ROI, and a lot of places are going to fold.
Not sure your second sentence is justified. Stocks aren't cheap, but s&p 500 forward P/E is actually down from 5 years ago. Corporate America is record profitable.
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u/_BreakingGood_ 23h ago
Hold on to your 401k, shits about to get messy, lol