Some investment advisors are pushing this market sector.  Hype ?

 

It seems the profits from AI software come essentially from rising stock prices rather than sales or non-existant dividends.  I.e. based upon the assumption of fantastic future sales revenue.

 

The infrastructure companies - processors, servers, data-centres, etc. - are described as selling from one to another, to another, with the cash circulating back again to where it originated; which looks good on paper.  Maybe a doom loop?

There is other creative accounting such as depreciation extended beyond likely life of assets.

How long will it be before the new data-centres receive the electric power they need?

 

Some, while not denying an important future for AI, feel the AI stock valuations are in a bubble which will burst.
And which will then pull down the rest of the stock-market.
Michael Burry, the real-life character who inspired 'The Big Short', predicts an AI bubble crisis and a ten trillion USD market crash.

 

Any opinions ?

Always a good time to invest AT THE VERY TOP

The market looks like going down 10% or more. Too high.

1 hour ago, ericbj said:

Michael Burry, the real-life character who inspired 'The Big Short', predicts an AI bubble crisis and a ten trillion USD market crash.

And I read something the other day that he had a big short but has now closed or deregistered his hedge fund.....

 

Anybody interested and following would be aware of the many commentators suggesting it is over egged for some months so you are a little late with the commentary......

1 hour ago, topt said:

And I read something the other day that he had a big short but has now closed or deregistered his hedge fund.....

 

Anybody interested and following would be aware of the many commentators suggesting it is over egged for some months so you are a little late with the commentary......

 

Yeah Burry closed Scion Capital - he's the one played by Bale in the movie 'The Big Short' - he said something about the markets not being properly valued. Same kind of thing he said last time around, he was right last time. This time he just gave up and quit.

I heard there was a quite a boom before the 1930s 'great depression', apparently for everything to crash it must inflate far beyond it's worth - this has kind of been expected by many for a good few years now.

As for an AI bubble - sure I bet there is but in the same way there was a 'dotcom bubble' at the end of the 90's - it's not going anywhere but the players will not all make it through.

When a guy on a forum posts a question about it being a good time to invest in AI stocks, when he’s five years too late, you know that it’s time to sell everything and get out of the market because the crash is coming any minute. There’s that old Wall Street story about a broker before the dotcom crash. He was out getting his shoes shined at lunchtime and the shoeshine guy said it looked like a good time to buy stocks. The broker realized that if even the shoeshine guy was thinking about investing, the market was overheated. He sold everything that afternoon and liquidated his clients’ portfolios, hitting the top almost perfectly.

3 hours ago, short-Timer said:

When a guy on a forum posts a question about it being a good time to invest in AI stocks, when he’s five years too late, you know that it’s time to sell everything and get out of the market because the crash is coming any minute. There’s that old Wall Street story about a broker before the dotcom crash. He was out getting his shoes shined at lunchtime and the shoeshine guy said it looked like a good time to buy stocks. The broker realized that if even the shoeshine guy was thinking about investing, the market was overheated. He sold everything that afternoon and liquidated his clients’ portfolios, hitting the top almost perfectly.

story's correct but incorrectly attributed to events 60 years after it happened [just prior to the Great Depression]

Bought Palantir at $15.40 😃 

 

9 hours ago, topt said:

And I read something the other day that he had a big short but has now closed or deregistered his hedge fund.....

 

Anybody interested and following would be aware of the many commentators suggesting it is over egged for some months so you are a little late with the commentary......

Yes, he deregistered his fund.  But he personally has taken a massive short position on two mega-conglomerates with a finger in the AI pie. Palantir is one of them, forget the name of the other.

 

While there have long been suspicions of over-investment in AI companies there has recently been a contrary opinion from some reputable advisors convinced there still remains plenty of upside potential.  Off the top of my head, Joel Litman, Doc Eifrig, James Altucher.

 

Personally I have never dipped my toe into the AI market.  My resources are very limited, so apart from physical p.m.s (since 2014) I have long been concentrated in the miners including royalty and streaming stocks (of which one uranium) and MP Materials (for US rare earths).  This ignores advice on spreading one's investments over market sectors, but has so far done alright.

 

If there happens to eventuate a stock market collapse, which will surely arrive some day, everything falls.  But precious metals recover rapidly, to judge from past events.

11 hours ago, Celsius said:

Always a good time to invest AT THE VERY TOP

Better to wait for now, and see how this will go down eventually! It is a bubble for sure, 

The problem with those AI companies is that they are all heavily investing in each other, so they're pumping each other stocks up. If one goes down, and I expect this to happen in the not so distant future, there will be a chain reaction

This morning received a link  promoting a potent fear-&-greed-mongering informercial, but which also led to this quite informative page which seems to be freely readable to all:

 

https://saveamericastocks.com/free-report.html

 

1 hour ago, CallumWK said:

The problem with those AI companies is that they are all heavily investing in each other, so they're pumping each other stocks up. If one goes down, and I expect this to happen in the not so distant future, there will be a chain reaction

 

They know what they are doing. The end goal is total control and dependence. Too big to fail. 

 

Gets to the nitty-gritty about halfway in:

 

AI Bubble Exposed As Vapourware | $15 Trillion Fake Valuation

 

 

Just like all the suckers investing gambling in bitcoin. 

IMHO the market is in the process of either profit taking, or a slight correction.  

 

I have never been good at timing the market (just the very opposite) so take such a comment of mine based upon your own trading strategy and risk tolerance.

 

Some stocks that I currently hold (with various sized holdings) that have some component of AI include:

• NVDA
• TSM 
• PLTR
• GOOGL
• ASML
• AVGO
• ISRG 

These are all pretty risky (IMHO) to varying degrees, and should only be purchased by those willing to take a risk.  I could be wrong in choosing and holding these.

 

I purchased the above all quite some time back with a low entry point. I currently plan to mostly hold these positions through any market correction or pullback, as 

(1) I have never made money on trying to time the market , but rather I have made money on long term holding of a quality stock 👍 , and

(2) I have currently sold some stocks so to have a cash reserve.

 

Other high tech stocks that I currently hold include INTC (purchased same time US Govt purchased a bunch) , and also AMZN.  Again, I purchased both these some time back with lower entry points.

 

I also hold other stocks that are not high-tech/AI related but I prefer not to go into such (nor into any more of my holdings) here.
.

This AI area is very speculative - as there is a LOT of talk this could be like another dot.com bubble.  It is VERY VERY much, let the buyer beware.

3 hours ago, gargamon said:

Just like all the suckers investing gambling in bitcoin. 

If you can afford to gamble there are ways of doing it that reduce risk.

 

Only gamble what you can afford to lose.

 

Follow the "big money" and get in early.

 

Don't follow in the wake of the herd; and avoid meme stocks

.

Don't invest in what you have no understanding of  Do your own research or study that of others.  Watch how market sectors are performing as well as individual stocks.

 

Set stop-losses based upon either sum invested or peak value reached.

 

With something highly volatile, like Bitcoin, when the price doubles cash out half and leave half on the table.  When it doubles again in value repeat the procedure.  And so on.  When it falls to zero you can still be well in pocket.

 

Sorry to say, I have not followed all this advice myself.

21 hours ago, gargamon said:

Just like all the suckers investing gambling in bitcoin. 

No one has lost money with Bitcoin but impatient colts.

1 hour ago, Yumthai said:

No one has lost money with Bitcoin but impatient colts.

The Trump crime family has already made it's billions from crypto. Now it's time for the suckers to get their justified losses. Enjoy.

25 minutes ago, gargamon said:

The Trump crime family has already made it's billions from crypto. Now it's time for the suckers to get their justified losses. Enjoy.

Don't be so bitter because you keep missing the crypto train, it's never too late!

I never discuss on forums what shares and stocks I deal in all I say is thankyou Margaret Thatcher former UK PM who gave the UK public the opportunity to purchase shares it was an opportunity I took and as I write the first shares I ever purchased we’re in a utility company which I still hold all I will say is AI looks interesting 

2 hours ago, crazykopite said:

I never discuss on forums what shares and stocks I deal in all I say is thankyou Margaret Thatcher former UK PM who gave the UK public the opportunity to purchase shares it was an opportunity I took and as I write the first shares I ever purchased we’re in a utility company which I still hold all I will say is AI looks interesting 

 

Thanks for being so informative 

On 11/16/2025 at 2:05 AM, short-Timer said:

When a guy on a forum posts a question about it being a good time to invest in AI stocks, when he’s five years too late, you know that it’s time to sell everything and get out of the market because the crash is coming any minute. There’s that old Wall Street story about a broker before the dotcom crash. He was out getting his shoes shined at lunchtime and the shoeshine guy said it looked like a good time to buy stocks. The broker realized that if even the shoeshine guy was thinking about investing, the market was overheated. He sold everything that afternoon and liquidated his clients’ portfolios, hitting the top almost perfectly.

 

I got those vibes in crypto back at the peak of 2017 when my middle aged Thai female colleague somewhere in Isaan asked me how to buy Bitcoin.

 

The crash almost immediately after that was epic. It dropped 80% and took 3 years to recover.

 

Fortunately, I sold.

On 11/17/2025 at 10:46 AM, gargamon said:

The Trump crime family has already made it's billions from crypto. Now it's time for the suckers to get their justified losses. Enjoy.

 

 

Things may not be as simple as they sometimes seem.  From an unsolicited newsletter just received:
------------
"Bitcoin ETFs just logged their second-worst month on record. Headlines screamed panic. Price cracked below $93,000 And U.S. spot ETFs bled nearly $870 million in a single day, putting November on track to challenge February’s all-time outflow record. On the surface, it looked simple: institutions were heading for the exits.

"But the surface is never the story. While ETF flows turned red, Harvard tripled its Bitcoin exposure, whales quietly accumulated 36,000 BTC, and more than $7.3 billion in stablecoins moved into Binance…"

31 minutes ago, FruitPudding said:

Fortunately, I sold.

That's rather unfortunate.

31 minutes ago, FruitPudding said:

 

I got those vibes in crypto back at the peak of 2017 when my middle aged Thai female colleague somewhere in Isaan asked me how to buy Bitcoin.

 

The crash almost immediately after that was epic. It dropped 80% and took 3 years to recover.

 

Fortunately, I sold.

And looks like another crypto winter is about to hit. Bitcoin just wiped out all of its 2025 gains. Winter is coming.

35 minutes ago, FruitPudding said:

 

I got those vibes in crypto back at the peak of 2017 when my middle aged Thai female colleague somewhere in Isaan asked me how to buy Bitcoin.

 

The crash almost immediately after that was epic. It dropped 80% and took 3 years to recover.

 

Fortunately, I sold.

 

Fortunately?  Do you have an abhorrence for money?

 

21 November 2017, I acquired a minuscule fraction at $7,620 / BTC.
2 January 2019 I bought 0.14 of a Bitcoin at €3 418 / BTC.
Bitcoin's value has gone up a bit since those days.

 

Although many small retail investors are cashing out now as the value plummets, some big institutional investors are buying in.

 

They say Bitcoin is a good medium of payment.  It is not.
It is highly volatile and good for a punt, venturing no more than one can afford to lose.  Maybe one day it will be a good store of value, since there can never be more than 21 million bitcoins.  Or maybe it will go to zero, because there is nothing backing it but confidence.  Same as for fiat currency.

4 hours ago, Yumthai said:

That's rather unfortunate.

 

Why? I avoided an 80% drop and 3 year recovery.

 

Bitcoin is only up 500% since I sold at the peak 8 years ago.

 

A lot of stocks have done just as well or better, and some have done a lot better. Look at Nvidia.

i cant make up my mind, tech stocks, gold, or bitcoin,

the only thing for certain is that i lose money while it sits in the bank

 

4 hours ago, ericbj said:

Fortunately?  Do you have an abhorrence for money?

 

Have you seen Nvidia stock? That was the crypto play, not actual cryptocurrency