Core Viewpoint - The current AI wave is not a bubble but a technological revolution similar to the early internet era, expected to drive global GDP growth to 7% to 8% over the next decade [1][8]. Group 1: AI Bubble Assessment - The market is not in a bubble as there is significant demand for AI products, with around 1 billion AI chatbot users, projected to grow to 4 to 5 billion by the end of the decade [2][3]. - The underlying tools for knowledge workers are expected to become ten times more powerful in the coming years, leading to a 50-fold increase in user capabilities [2]. - Current revenue for AI foundational model companies is approximately $30 billion, with a potential monetization scale of about $1.5 trillion [2]. Group 2: Historical Context and Comparisons - The current situation is compared to the 1995 internet moment, where significant growth potential existed before the market correction [3]. - Historical examples include the cost of sequencing a human genome, which was $2.7 billion and took 13 years, contrasting with today's technological readiness [3]. Group 3: Valuation and Growth Justification - Companies in exciting fields are expected to see their current premiums diminish significantly within five years due to overwhelming revenue growth and profit margin expansion [4]. - Palantir's U.S. commercial revenue growth reached 123%, exceeding aggressive expectations based on cost reduction and scaling [4]. - OpenAI is projected to reach an annualized revenue of approximately $20 billion by the end of this year, potentially growing to $40 to $50 billion next year, and $100 billion by 2027 [5]. Group 4: Major Opportunities in Technology - The largest opportunity lies in embodied AI, with projected revenues from Robotaxi services expected to grow from under $1 billion to $8 to $10 trillion in the next 5 to 10 years [6]. - The software stack's PaaS layer is expected to be as large as the foundational model layer, with companies like Palantir encroaching on SaaS players [6]. Group 5: Market Impact and Investment Strategy - Many non-AI companies are being penalized by the market for not accelerating revenue growth, indicating a shift in market dynamics [7]. - Companies with significant cash reserves are increasing capital expenditures, while those showing revenue growth are being rewarded [7]. - The transportation cost of autonomous trucks is expected to be lower than rail, potentially leading to stranded assets in traditional sectors [7]. Group 6: Future Growth Projections - The market is expected to grow at a compounded annual growth rate of over 10% until the end of the decade, with disruptive innovations growing at rates of 50% [8]. - If the current technological revolution is accurate, actual GDP growth could accelerate to around 5% over the next 5 to 10 years, contributing to global GDP growth of 7% to 8% [8].

Everybody Loves a Ponzi‘Perhaps there is still time to defeat history.’-Daniel OliverMr. Oliver must be an unreconstructed optimist. An un-mugged Democrat. A man enjoying his first vote…or his second marriage.The history he is referring to is the one we know so well. It is the history of booms and busts…and of great nations laid low by the ‘fatal conceit’ of their leaders.All bubbles burst.All paper currencies become worthless.All empires decline and fall.it is a repeatable, predictable, investable history ...

Several weeks ago, Michael Burry, the “Big Short” investor who famously predicted the 2008 housing crash, issued a fresh warning about the explosive boom in artificial intelligence (AI).  Burry believes markets are once again repeating the same patterns of blind optimism that preceded past major bubbles. But not everyone agrees, with Ark Invest CEO Cathie Wood pushing back strongly against the idea that AI is overheated. Michael Burry says AI bubble 'rhyming' housing crisis Burry deregistered his hedge ...

As we gather around our Thanksgiving tables, there's an abundance of reasons to be grateful beyond the traditional turkey and trimmings. The investment landscape of 2025 has served up a remarkable feast of returns, with certain asset classes delivering performances that would make even the most seasoned financial advisor ask for seconds. Like a perfectly orchestrated holiday meal, different investment sectors have contributed their unique flavors to creating an exceptionally satisfying year for equity inves ...

Core Insights - Hyperscalers' capital expenditures are projected to grow by 30% and exceed $500 billion by 2026, following a 60% growth over the past two years [1] - The AI sector is still in its early infrastructure-building phase, with significant investments from major firms like Nvidia, while some investors are betting against leading AI stocks [2][4] - Concerns are rising regarding the sustainability of AI investments as major tech firms shift from cash flow funding to borrowing, with notable debt levels observed [5][6] Investment Trends - Major tech firms are raising substantial debt to fund AI infrastructure, indicating a significant compute-buildout [3] - Investors like Michael Burry have taken bearish positions against AI stocks, reflecting skepticism about inflated valuations in the AI market [4][9] - The trend of off-balance sheet debt is raising alarms among market experts, drawing parallels to past financial collapses [6] Market Dynamics - OpenAI's $1.4 trillion commitment is a critical factor; if it fails to secure funding, it could negatively impact the valuations of AI-related companies [7] - The AI market is experiencing a wave of low-quality offerings, referred to as "AI slop," which are contributing to inflated expectations and confusion [8][9] - Investors are advised to focus on companies that demonstrate real technological advancements and customer solutions, rather than those riding the hype [9] Future Outlook - The AI market is expected to undergo corrections as capital becomes more discerning, favoring substantive innovations over copycat ventures [11] - Despite concerns, the AI sector is unlikely to experience a collapse similar to the dot-com bubble due to strong enterprise momentum [11] - Long-term success in investing hinges on maintaining discipline and diversification rather than attempting to predict market trends [15]

Palantir’s (PLTR) solid run has hit a speed bump. After soaring to new highs earlier this year, PLTR stock has slipped nearly 22% from its peak of $207.52. The pullback comes as investors grow uneasy about the company’s stretched valuations and concerns over the artificial intelligence (AI) bubble. Even with this decline, the stock is still up roughly 112% in 2025, and its valuation is still absurdly high. Palantir stock trades at a price-sales ratio of 128.8x, far beyond the multiples typically associate ...

Core Insights - The market is entering a new period characterized by a shift in investor sentiment, indicating that valuations are becoming increasingly important [1] Group 1 - The current market environment can be described as a paradigm shift, where traditional metrics may no longer hold the same weight [1] - There is a growing emphasis on the significance of valuations in investment decisions [1]

Core Viewpoint - Wedbush maintains a positive outlook on the technology sector, asserting that despite increasing discussions about an "AI bubble," the market is still in the early stages of a multi-year investment cycle [1] Group 1: Market Insights - Capital expenditures of large tech companies are expected to reach between $550 billion to $600 billion by 2026 [1] - Significant spending from governments, the Global 2000 organizations, and regions such as Asia and the Middle East is anticipated to drive a surge in AI-related expenditures [1] - U.S. tech giants are expected to benefit from this wave of spending [1] Group 2: Stock Recommendations - Wedbush has identified ten stocks to hold until the end of the year, which include Microsoft, Palantir, NVIDIA, AMD, Tesla, Apple, Meta, Alphabet, Crowdstrike, and Palo Alto Networks [1]

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the stocks Jim Cramer recently shed light on. A caller asked for Cramer’s opinion on the company, and he replied: “Alright, I’m a buyer of Palantir. I know it’s come off, but it’s a wild trader. This is Alex Karp. He’s not a close friend of mine, but I think he knows what he’s doing.” Photo by Joshua Mayo on Unsplash Palantir Technologies Inc. (NASDAQ:PLTR) develops data analytics and AI software platforms, including Gotham, Foundry, Apollo, and Palan ...

Market Overview - U.S. stock futures showed slight declines, with Nasdaq 100 down approximately 0.19%, S&P 500 down around 0.10%, and Dow Jones down about 0.13% following a strong performance in the previous session [2] - The S&P 500 climbed 1.55% to close at 6,705.12, the Nasdaq Composite surged 2.69% to settle at 22,872.01, and the Dow Jones gained around 202.86 points, or 0.44%, to end at 46,448.27 [3] Economic Indicators - Key economic reports are anticipated, including October's U.S. retail sales and Producer Price Index (PPI) readings, which are crucial for assessing inflation and consumer spending [4] - Upcoming reports include October Durable Orders, November Chicago PMI, October New Home Sales, and October Personal Income and Outlays [4] Company Performance - Alphabet (GOOGL) shares rallied over 6% following the announcement of its upgraded AI model, Gemini 3 [5] - Other AI-related companies saw strong performance: Broadcom surged 11.1%, Micron Technology gained about 8%, Palantir Technologies rose 4.8%, and Advanced Micro Devices advanced 5.5% [5] - Alibaba Group shares surged 5.1% after announcing its AI app, Qwen, had 10 million downloads in its first week [6] - Novo Nordisk shares tumbled 5.6% after a clinical trial for its Alzheimer's treatment failed [6] - Corporación América Airports shares gained 1.6% after reporting third-quarter revenues that beat estimates [6] Market Sentiment - There is a growing expectation of a Federal Reserve interest rate cut in December, with traders betting on an 85% probability of a rate cut next month [8] - Recent dovish remarks from Fed officials have contributed to this shift in expectations, positively impacting stock performance despite concerns about AI sector valuations [8]