The hype around all things “AI-related” is starting to feel like the 1999 Internet Bubble.
The chatter that AI is going to save the U.S. from falling into recession (I believe we are already there), is delusional. I would short that thesis all day.
There simply is not enough Enterprise Customer demand for AI / advanced automation products and services to warrant the sharp acceleration in equity valuations for certain “AI” companies.
- Nvidia (NVDA) is one such company.
- C3.ai (AI) is another (AI shares are off today post-EPS call, but remain up approx. 214% YTD).
- Snowflake (SNOW) is a third.
- This level of AI hype reminds me of the Internet Bubble, circa 1999.