Joining us this morning is Niles Investment Management founder and portfolio manager Dan Niles. Got some thoughts on the AI trade in the market at large. Dan, good to see you again. >> To see you too, Carl.>> So, a lot was made of uh Broadcom's inability, for example, to rally after its earnings, but maybe the story can be different with Micron today. >> Yeah, I mean, I think you have to look at the the short-term picture and the long-term picture. So in the short-term picture, what's changed is now really ...

CoreWeave stock price continued its downward trend this week as investors remained concerned about the AI bubble. CRWV has dropped in the last four consecutive days, reaching its lowest level since Ma... ...

Core Insights - Nvidia's stock has fallen to a three-month low due to concerns about an AI bubble and increased competition in the chipmaking industry [1][4] - The company faces challenges from competitors, including a significant surge in the stock of MetaX Integrated Circuits, which debuted with a nearly 700% increase [2] - Nvidia's chips are facing bans in China, and the company is being compared to the dot-com bubble, raising investor skepticism [3][4] Industry Trends - A report from UBS projects that global capital expenditure on AI could increase by nearly 35% next year, reaching $571 billion, indicating ongoing investment in the sector [6] - Analysts from Bank of America suggest that the AI boom is still in its early stages, with Nvidia being highlighted as a top stock to buy in 2026 [7] - Despite positive projections, Nvidia's stock has declined over 16% in the last two months, reflecting negative market sentiment [8]

Core Viewpoint - Investor apprehension surrounding Oracle has led to a significant decline in its stock price, which has fallen nearly 50% from its all-time high on September 10, and is now affecting its projects [1] Group 1: Oracle's Financial and Project Concerns - Asset management firm Blue Owl Capital has reportedly withdrawn from Oracle's $10 billion data center project due to unfavorable debt terms, raising concerns about Oracle's high level of debt [1] - There are worries that Oracle could delay the completion of data centers for OpenAI, although the cloud company has denied these reports [2] Group 2: Market Impact - Oracle's shares fell 5.4% on Wednesday, contributing to month-to-date losses exceeding 11%, which also negatively impacted related companies such as Broadcom, Nvidia, and Advanced Micro Devices [2] - Major U.S. indexes experienced declines, with the S&P 500 retreating 1.16%, the Dow Jones Industrial Average dropping 0.47%, and the Nasdaq Composite losing 1.81%, marking its worst day in nearly a month [3] Group 3: AI Market Outlook - Despite the recent pullback in artificial intelligence stocks, Bank of America suggests that the AI trade may still have potential for growth into 2026, with a caution that rising shares do not preclude the formation of a bubble [3] - Analysts at Bank of America believe that the current market progression supports the thesis of a larger AI bubble continuing to build, although identifying the exact moment before a potential bubble burst remains challenging [4]

Group 1: AI Boom and Market Performance - Nearly 75 percent of the S&P 500's return in 2025 has come from AI-linked stocks, indicating a significant AI boom in the market [1] - Major markets like the S&P 500, Nikkei, Shanghai Composite, Kospi, and Taiex delivered impressive returns, while India's Nifty underperformed with a 9.08 percent return [2][12] - The launch of OpenAI's ChatGPT in November 2022 was a transformative event, leading to a surge in AI investments among tech giants [2][13] Group 2: Valuation and Market Risks - Current valuations of AI stocks, such as Nvidia at a PE of 46, Microsoft at 35, and Apple at 37, are not considered bubble valuations compared to the tech boom of 2000 [5][6][7][13] - Concerns exist that significant investments by tech giants may not yield returns justifying their high valuations, potentially leading to a market crash [8][13] - A Bank of America survey indicated that 45 percent of global fund managers view the potential burst of the AI bubble as the biggest risk to global markets in 2026 [9][13] Group 3: Future Market Outlook - A correction in AI stocks is likely in 2026, with a potential decline of 10 to 20 percent, which could positively impact markets like India [10][12][13] - India's GDP growth rebounded impressively with 8.2 percent growth in Q2 FY26, and corporate earnings are projected to rise by 15 percent in FY27 [11][12] - Robust economic growth and improving corporate earnings in India, along with a correction in AI trade, could reverse FII outflows and lead to decent market returns in 2026 [12]

Market Outlook - The stock market is expected to see a third consecutive year of gains, but forecasts suggest a potential decline in 2026, with the S&P 500 projected to finish around 6,500, which is over 3% below its recent close [1][9] - Analysts are generally cautious about stock returns moderating after three years of significant gains driven by AI stocks, with concerns about a potential AI bubble impacting market leaders [3] Historical Context - Historical trends indicate that midterm election years tend to be challenging for stocks, with increased volatility and poor performance since 1950 [4] - Leadership changes at the Federal Reserve have historically coincided with market turbulence, raising concerns about the potential impact of political pressures on the Fed's independence [5][6] Sector Analysis - The tech sector, particularly AI-related stocks, is under scrutiny as investors reassess valuations and spending on AI infrastructure after a prolonged bull market [7] - Broadcom's recent earnings report exemplifies the high expectations for AI beneficiaries, as despite exceeding estimates, the stock fell significantly, indicating market pressures on AI stocks [8][10]

Concerns about an AI bubble and increased competition are weighing on Nvidia as the stock fell to a three-month low on Wednesday. Most Read from Fast Company Shares of the Santa Clara, California-based company tumbled more than 3% amid a broader decline for those chipmakers that are key to the artificial intelligence boom. Shares of Advanced Micro Devices and Broadcom were also down 4% and 5%, respectively. In recent weeks, a slew of companies have made moves that could chip away at Nvidia’s domination ...

Core Viewpoint - Jim Cramer warns Amazon against engaging in speculative AI deals reminiscent of the 1990s dotcom bubble, particularly a potential $10 billion investment in OpenAI for the use of its custom AI chips [1] Group 1: Investment Concerns - Amazon is reportedly in discussions for a $10 billion investment in OpenAI, which raises concerns about the necessity of selling Trainium chips [1] - Cramer expresses disbelief that Amazon would participate in such deals, labeling them as "not real" [1] - The current trend of high AI-related spending by major companies is alarming, as it mirrors the speculative behavior seen before the dotcom crash [1] Group 2: Market Predictions - Cramer predicts that the stock market will not support excessive speculative investments, referencing the historical crash of the tech-heavy Nasdaq after the 2000 peak [1] - He describes the interconnected investment activities in AI as a potential bubble, drawing parallels to the year 2000 [1] Group 3: OpenAI's Activities - OpenAI has been aggressively securing computing power from various firms, including Nvidia and Oracle, amounting to $1.4 trillion in infrastructure commitments recently [1] - Cramer characterizes OpenAI's current deal-making as "2000 in a nutshell," indicating a pattern of leveraged bets that could lead to a bubble [1]

It's time to spotlight the tech sector, look back at the past year in tech. Joining us now to help us do that is Daniel Newman, the CEO of Futurum. Daniel, thank you for taking the time to be with us today.You know, since we're talking tech, I guess I have to ask everyone's favorite or least favorite question, depending on how you look at it. Do you think we're in an AI bubble. >> Yeah, that's a great way to start the conversation.Good to speak with you. And what a year it has been. I am probably one of the ...

Core Insights - Amazon is reportedly in discussions to invest $10 billion or more in OpenAI, the creator of ChatGPT, which could elevate OpenAI's valuation to over $500 billion [1][3]. Group 1: Investment Details - The negotiations began in October after OpenAI transitioned to a for-profit model, facilitating easier funding opportunities from other companies [2]. - The potential deal includes OpenAI purchasing custom AI chips from Amazon, alongside a previously agreed $38 billion in cloud computing capacity from Amazon Web Services [4][6]. Group 2: Market Implications - This investment would be part of a trend where major cloud and hardware providers are investing in AI startups that also serve as their suppliers, raising concerns about a potential AI bubble reminiscent of the dotcom bubble [3][5]. - OpenAI has secured over $1 trillion in agreements for chips and computing power recently, but its current revenue from products like ChatGPT is insufficient to meet these commitments, leading to skepticism about its financial sustainability [4][5].