AI has become a hot topic of investment. Many American technology giants have launched trillions of dollars in capital expenditure around AI, in addition to their own funds, and have issued a lot of debt to raise funds. This speed and scale is unprecedented. The technology world, especially AI development, has the characteristics of win-take-all (Winner takes it all), and many giant companies hope to beat their rivals by burning money to become a minority winner. No wonder Sundar Pichai, CEO of Google's parent company, warns that there is a bubble and "irrationality" in AI, while it is not surprising that while AI is making any effort to increase investment.
Finally, returning to the general investors who participated in this AI investment :
(1) Not all AI concept stocks are worth investing in. The financial market is filled with the concept of fake AI. When the craze fades, the gold plating on your body disappears and you see a large number of companies swimming naked. (2) Not all AI investments have a rapid profit return. AI is a general purpose technology, similar to infrastructure in power, railway or network, with the characteristics of heavy investment, slow return. It currently needs to digest the stagnant adoption rate of the enterprise, and consumers' willingness to pay for AI applications is not as large as imagined. Even if companies invest astronomical amounts of money, they are unlikely to get returns in the short term. Not all AI companies will eventually emerge. As mentioned above, as a revolutionary technology, AI has a situation where everything is wilting. Even if you're looking for a real AI company with a technological mass, if it doesn't become a leader in a specific field, your investment will one day be completely wiped out. If you have a keen eye for heroes, you have chosen the king. Even if there is a bubble in the price today, it will eventually rise and fall.
The definition of a bubble is that the asset price is far higher than its intrinsic value. Currently, there is a situation where both AI concept stocks are rising, and the bubble is real. However, when the greed (seizing advantages) and fear (fear of falling behind) in human nature is mobilized, it is difficult to stop. The flood of water will only make the bubble bigger and bigger when countries are pouring in with all their national strength, big companies are betting on it, and investors are rushing into the market.
$谷歌(GOOG)$ sounds good
$英偉達(NVDA)$ observation
$台積電(TSM)$ sounds good
Other super high pe ai stock, short term dangerous at least
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