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I don't buy Powell view from his comment: you can have revenue but not profits, and also the dotcom [bubble] at the end is what makes AI possible.
by wslh 1y ago
I don't buy Powell view from his comment: you can have revenue but not profits, and also the dotcom [bubble] at the end is what makes AI possible.
- rmah 1y agoWhile I agree with your general sentiment, in fairness, Powell didn't say "revenue", he said "earnings", which is near equivalent to profits in financial reporting lingo.
- wmf 1y agoBut the AI companies do not have profits. Even Google/MS/Meta are probably subsidizing AI with the profits from their non-AI businesses.
- wslh 1y agoI assume that in this context is basically about NVIDIA, and some other chip companies.
- dragonwriter 1y agoBut NVidia's AI related profits are driven by the AI-related speculative spending in the uncertain hope of future profits by firms in the AI gold rush, they are just the leading seller of shovels.
- emp17344 1y agoPowell is so influential as the Fed Chair that he’s constrained in what he can even say. If he outright says there’s a tech bubble, that statement alone could cause the bubble to pop. I’m not convinced these are his actual views - he’s saying what needs to be said to protect the economy.