The stock reaction seems to indicate a tipping point of sorts for this seemingly bottomless spending, which had previously been given the benefit of the doubt by investors. But no longer. They're growing exhausted by the eye-popping figures, and are rebelling against the lack of tangible results .The chart below shows the spike in spending in action. Updated for the most recent info shared during earnings season, these five companies are on pace to drop $350 billion of AI capex in 2025.The common thread: co ...

Core Insights - The article discusses Jim Kramer’s extensive experience in the financial markets, highlighting his perspective on the transition from the dot-com bubble to the current AI bubble [1]. Group 1 - Jim Kramer is recognized as a prominent figure on Wall Street, known for his vocal opinions and market insights [1]. - Kramer emphasizes the importance of trusting the market, suggesting that there are significant opportunities available for investors [1]. - He mentions a personal connection with Chachi, indicating a level of familiarity and trust in his interactions within the industry [1].

Core Scientific and CoreWeave Acquisition Attempt - Core Scientific shareholders rejected a $9 billion all-stock acquisition offer from CoreWeave, influenced by the largest shareholder's recommendation [1][4] - Core Scientific emerged from bankruptcy in January 2024, and its current market cap is approximately $6.6 billion [1][4] CoreWeave's Market Performance - CoreWeave's market cap increased from $14 billion to $66 billion, with shares trading around $140, as it transitioned to serving AI workloads [2] - CoreWeave has been actively acquiring companies, including a $10 billion, 12-year contract with Core Scientific for AI services [3][5] Investor Sentiment and Market Trends - Investor Sina Toussi believes Core Scientific can independently achieve success similar to CoreWeave, citing rising equity valuations in AI infrastructure [4] - The rejection of the acquisition bid reflects a trend of investors seeking larger offers, indicating a potential AI bubble [5] CoreWeave's Recent Acquisition - CoreWeave acquired Marimo, an open-source Jupyter Notebook competitor, for an undisclosed amount, with Marimo having raised approximately $5 million [5][6]

Core Scientific and CoreWeave Acquisition Attempt - Core Scientific shareholders rejected a $9 billion all-stock acquisition offer from CoreWeave, influenced by a vote-no recommendation from their largest shareholder, Sina Toussi of Two Seas Capital [1][4] - CoreWeave has transitioned from crypto mining to serving AI workloads, with its market cap increasing from $14 billion to $66 billion since its IPO, reflecting strong investor interest in AI [2] - CoreWeave had previously signed a $10 billion, 12-year contract with Core Scientific for AI services, which was seen as a premium offer compared to Core Scientific's share price at the time [3] Investor Sentiment and Market Dynamics - Investor Toussi believes Core Scientific can independently achieve success similar to CoreWeave, citing rising equity valuations in AI infrastructure as a reason to reject the acquisition offer [4] - Following the rejection of the acquisition, Core Scientific's stock price increased, leading to a market cap of $6.6 billion [4] - The rejection of acquisition bids in pursuit of larger offers indicates a potential AI bubble in the market [7] CoreWeave's Strategic Moves - CoreWeave continues to pursue acquisitions, recently acquiring Marimo, an open-source Jupyter Notebook competitor, for an undisclosed amount, with Marimo having raised approximately $5 million [7] - The acquisition of Marimo aligns with CoreWeave's strategy to enhance its capabilities in AI app development [8]

Core Argument - The Federal Reserve chair's argument is criticized for being based on inaccurate and potentially harmful conventional wisdom prevalent on Wall Street [1] Group 1 - The article highlights the dangers of relying on traditional financial narratives that may not reflect the current economic realities [1] - It suggests that the Federal Reserve's approach may be misguided due to its dependence on flawed assumptions [1] - The piece calls for a reevaluation of the prevailing economic theories that guide monetary policy decisions [1]

I'm certain that the AI bubble will pop from the related party arrangements between all the Data/AI/Chip companiesThey all have a vested interest in keeping the party goingBut with such an entangled industry it'll just take one domino to topple to see dramatic ripple effects https://t.co/m07cqlIovAs4mmy (@S4mmyEth):AWS recently experienced an outage costing them an estimated ~$75m/hour hit to its P&LA drop in the ocean when you're raking in $33bn a quarter from compute to feed the global AI machineHow long ...

AWS recently experienced an outage costing them an estimated ~$75m/hour hit to its P&LA drop in the ocean when you're raking in $33bn a quarter from compute to feed the global AI machineHow long do you think until we hit peak AI bubble? https://t.co/Zw52JEVmOZs4mmy (@S4mmyEth):Interesting crypto impact analysis from @Surf_Copilot on the AWS outage: https://t.co/CncrqNIiGI ...

Core Viewpoint - Meta Platforms experienced a significant drop in share price, over 11% in a single day, due to concerns over high AI spending and a rare earnings miss [1][2] Financial Performance - The third quarter results appeared negative on the surface, primarily due to a one-time $16 billion tax charge and ongoing cash burn from the Reality Labs division [3][4] - When excluding the tax charge, the financial numbers were robust, indicating that higher expenses impacted margins but did not fundamentally weaken the company's position [5] AI Investment Strategy - Meta's aggressive investment in AI is seen as a strategic move to capitalize on the AI revolution, with expectations to monetize innovations sooner than competitors [6] - The current market sentiment may be influenced by fears of an "AI bubble," but the company's long-term strategy is viewed as sound [2][6] Market Sentiment and Valuation - The recent decline in share price is considered overblown and unwarranted, suggesting a potential buying opportunity for investors [6] - Meta's shares are trading at approximately 26 times forward price-to-earnings (P/E), which may mitigate the impact of any potential AI bubble on its valuation [7]

Meanwhile, want to get back to uh SEC Chairman Paul Atkins. We had a little technical snafu. The the government shutdown had nothing to do with it, but I I made a bad joke about that.It's nice to see you, sir. >> Good to see you, too, Andrew. Thanks for having me.>> So, how is this government shutdown affecting you. How do you think it's affecting the markets. I know there's a number of companies that have saw it to go public.Uh, and I imagine there's going to be some delays at the minimum. >> Yes. Well, I ...

Core Insights - Retirees and investors nearing retirement face challenges in achieving growth from their stock portfolios to combat inflation and rising healthcare costs, while also being wary of potential market downturns [1] - The current investment strategy suggests that recent retirees should maintain over half of their portfolios in stocks, but concerns arise due to the concentration of the U.S. stock market in a few large tech companies and the potential for an AI bubble [2] - Chip sales have significantly contributed to GDP growth, accounting for approximately 92% in the first half of the year, highlighting the importance of AI as a growth driver for the U.S. economy, though it poses short-term risks for investors [3] Investment Trends - Many retirees are shifting their investments towards equity income-generating ETFs to reduce stock exposure while still aiming for growth [4] - Buffered ETFs, which protect against losses while allowing for some upside, have seen substantial growth since the pandemic, with assets exceeding $30 billion and an average return of about 11% per year over five years [5] - There is a notable shift in investor mindset, with retirees now prioritizing steady and predictable returns over outperforming the S&P 500, seeking "performance that's good enough" [6] Cost Considerations - Buffered ETFs typically charge higher fees (0.75% to 0.85%) compared to standard equity index ETFs (around 0.03%), but the added cost may be justified for retirees focused on capital preservation and risk management [7] - Major buffered equity ETFs include FT Vest Laddered Buffer ETF (BUFR) with $7.9 billion in assets and a 0.95% expense ratio, Innovator Defined Wealth Shield ETF (BALT) with $1.9 billion and a 0.69% expense ratio, among others [8]