The bubble danger: 3 reasons cooling AI stocks
Calcalist analyzes the sharp declines on Wall Street, focusing on AI stocks. The Nasdaq plunged 4.5%, wiping out $2.2 trillion. The article identifies three bubbles: Anthropic, chips, and neo-clouds, and quotes economists who believe the market is not overvalued.
Calcalist analyzes the reasons for the sharp declines in the US stock market, with an emphasis on AI stocks. The Nasdaq plunged 4.5% in a turbulent week, wiping out $2.2 trillion. The article identifies three component "bubbles": the Anthropic bubble – the expected IPO of the artificial intelligence company, whose value may drop from $2 trillion to $1.5 trillion; the chip bubble – the SOX index fell 23% from its peak, but is still at the beginning of the year level; and the neo-cloud bubble – companies like Coreweave with $50 billion in debt and a bond yield of 15%. On the other hand, economists from major banks argue that stocks are not particularly expensive. The article notes that the escalation in the Middle East and the US elections are increasing uncertainty.