#311: Are We in an AI Bubble?
About this episode
The episode discusses the current stock market performance and questions whether we are in an AI bubble, highlighting significant stock price increases and contrasting opinions on the sustainability of this rally.
The market is on an absolute tear right now, and it’s raising some serious questions. Lucky for you, Mike and Emmet want to upack them all. Despite the crazy macroeconomic conditions, the market keeps performing. The Nasdaq Composite is up roughly 38% in the last year. And when you zoom in on individual stocks, things get even crazier. SanDisk (SNDK) is up 63% in a month, 450% in six months, and an eye-watering 3,800% over the last 12 months. Micron (MU) has jumped 86% in a month and nearly 8x in a year, while Western Digital (WDC) is up around 1,000% over the same period. Even lesser-known names like AXT (AXTI) are suddenly flying, up roughly 700% year-to-date. In fact, the top 10 stocks over the past 12 months have outperformed the top performers in the 12 month run-up to the dot-com bubble – a stat that’s hard to ignore. So… are we in an AI bubble? Skeptics like Michael Burry argue this rally looks even more extreme than 1999. And to be fair, many of the classic bubble ingredients are there: stretched valuations, momentum chasing, and heavy concentration in a single theme. But there’s a strong counterargument too. We’ve just come through a blockbuster earnings season, with the…
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