The AI bubble has further to run despite the looming crash
TL;DR
The Guardian argues the AI rally is not over yet: tech firms are still making huge profits, investors fear exiting too early, and global savings are chasing returns. The risk is concentrated in a handful of giants: Amazon, Alphabet, Nvidia, Meta, Microsoft, Apple and Tesla now dominate much of the S&P 500 and Nasdaq story. The warning signs are still real: debt-funded AI spending, stretched valuations and the top 10 S&P 500 companies making up roughly 40% of the index.
Nauti's Take
The sober point: a bubble can be obvious and still be profitable for years. Calling only for a crash can be wrong for a long time.
But pretending that AI spending automatically turns into durable monopolies is just buying PR with compound interest. The real test is which companies turn infrastructure into margins and which are mostly selling expensive data centers as a story.
Briefingshow
For AI, this is more than market noise. When valuations depend on a few platforms justifying ever larger AI spending, every model launch, chip forecast and advertising margin becomes a market risk. The useful distinction here is between real technological progress and an overheated investment narrative.
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