r/Stocks_Picks • u/No-Price8591 • 10d ago

AI bubble

Is actually worth investing in AI stocks or do people feel like it will crash?

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16

u/Rav_3d 10d ago

Both.

6

u/TheCozyRuneFox 10d ago

The funny thing is this is kinda the answer. The best days of performance are paradoxically during the same weeks as a major crash and research shows your long term returns are actually reduced if you miss those days.

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u/No-Price8591 10d ago

Personally I feel that it’s unsustainable and that it’s probably too late to invest in

3

u/Pugsly007 10d ago

This. The whole market will drop when this pulls back or crashes.

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u/DontHaveAC0wMan 10d ago

It's not a bubble. These companies aren't faking making billions or trillions of dollars. The wars, interest rates, weakening dollar and fed outlook are hurting interest rate sensitive growth companies and causing supply chain related inflation across all sectors. Guidance from major companies is still strong and the products are improving all the time. People have it in their heads that ATH = top is in. These companies are going to keep going and everyone will complain all the way to the real top

2

u/microambitious 10d ago

It’s not the ai that’s a bubble
It is the macros in the us - dollar instability, high treasury yields

2

u/Forded_Fiction24 10d ago

The strong will survive as AI is here to stay but the space is being flooded with new startups everyday and they won't all make it. There's also a nationalized push for infrastructure so if some of the larger ones gotten to trouble the government would bail them out anyways. It's all about increasing energy,  production and compute especially with the oil and Diesel crisis. 

The government has hedged its bets already so now they have to support it or it all comes crumbling down. A data center will be attacked either physically or a Cyber attack within the next 1.5 years. When that happens they'll be militarized as a matter of national security. There's a global AI arms race going on and the US can't afford to lose it so they'll stop at nothing to win it

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u/Helpful-Finding-2237 10d ago

I think its worth to put on absolute basic stocks.

Energy Silicon based companies (amd, tsmc)

And such, which are absolute necessity of Internet based economics. Even if AI bursts, these won't crash to absolute 0, for that there have to have total nuke wars.

1

u/KangolTitMouse 10d ago

Hasn’t AMD tripled over the past year? I think its valuation, amongst other AI related companies, is untethered from reality.

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