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I think most people (including many working in AI!) would agree that AI is currently at the peak of the hype cycle and there will be a bloodletting at some poin
by nkohari 3y ago
I think most people (including many working in AI!) would agree that AI is currently at the peak of the hype cycle and there will be a bloodletting at some point.
But I don't really understand how AI being hyped, and NVIDIA's stock being overvalued by extension, could result in a 2008-like market crash.
- Ekaros 3y agoTech stocks are responsible for most of the gains in stock market in past year. Nvidia is alone responsible for 28%... If that just doesn't seem unsustainable I don't think what is... AI is not pulling up traditional firms just a very small number of tech stocks. So with how much is concentrated on a few tech stocks, downturn in tech could lead to significant correction.
- VirusNewbie 3y ago>Tech stocks are responsible for most of the gains in stock market in past year. Ok, but none of the major tech companies other than Nvidia are AI companies. Sure, some of the pop to MSFT's stock is probably because of the OpenAI deal, AWS, GCP, and Azure is riding some of the wave of new AI investment money coming in, but none of them are first and foremost AI companies selling AI.
- nkohari 3y agoA stock market correction, sure. The market ebbs and flows, though. What happened in 2008 was a catastrophe that caused a multiyear worldwide recession. It's called the Global Financial Crisis for a reason.