When the market sold off last week on renewed fears of AI bubble and stretched valuations, Alphabet Inc. ( GOOG , GOOG:CA , GOOGL ) had reached new all-time highs. OverI'm specialized in fundamental equity research, global macro strategy, and top-down portfolio construction. I'm a senior analyst at a multi-strategy hedge fund with 7 years of experience. I graduated from UCLA with a degree of Business Economics and UMich Ross School of Business with a Master of Accounting. My articles primarily focus on comp ...

When the market sold off last week on renewed fears of AI bubble and stretched valuations, Alphabet Inc. ( GOOG , GOOG:CA , GOOGL ) had reached new all-time highs. OverI'm specialized in fundamental equity research, global macro strategy, and top-down portfolio construction. I'm a senior analyst at a multi-strategy hedge fund with 7 years of experience. I graduated from UCLA with a degree of Business Economics and UMich Ross School of Business with a Master of Accounting. My articles primarily focus on comp ...

Core Viewpoint - SoundHound AI has experienced significant volatility, with a stock increase of 835% in 2024 followed by a decline of 43% in 2025, raising concerns about its sustainability in the AI market [1][2]. Group 1: SoundHound AI - SoundHound AI's voice AI platform is utilized by various industries, including restaurants and automakers [1]. - The company has faced a steep drop in stock price, with a 38% decrease in the last month alone [1]. Group 2: Nvidia - Nvidia is considered immune to the AI bubble, with CEO Jensen Huang highlighting a "virtuous cycle of AI" as more industries adopt the technology [3]. - Nvidia holds a dominant market share of up to 90% in data center chips, with third-quarter fiscal 2026 revenue reaching $57 billion, including $51.2 billion from data center chips [4]. - The company's data center revenue grew by 66% year-over-year, significantly outpacing competitor AMD, which saw a 22% increase [5]. - Nvidia has provided guidance for $65 billion in revenue for the fourth quarter of fiscal 2026, representing a 65% increase from the previous year [5]. Group 3: Alphabet - Alphabet has made significant advancements in AI, integrating it into its products and investing in AI infrastructure [7]. - The company dominates the internet services market, with a 73% market share in the Chrome browser and a 90% market share in its Google search engine [8]. - Alphabet's advertising revenue in the third quarter was $74.18 billion, up 12.6% year-over-year, contributing to over 70% of its total quarterly revenue of $102.3 billion [9]. - The introduction of AI Overviews and the Gemini chatbot has helped Alphabet maintain its search market share against competitors like ChatGPT [10]. - Google Cloud, the third-largest cloud provider, reported a 33.5% increase in revenue to $15.15 billion in the third quarter, indicating its growing importance to Alphabet's business [12][13]. Group 4: Investment Outlook - Both Nvidia and Alphabet are part of the "Magnificent Seven" and have shown strong performance in 2025, with Nvidia up 30% and Alphabet up 58% [14]. - The dominant positions of Nvidia and Alphabet in their respective markets make them less susceptible to long-term disruptions, even in the event of an AI bubble burst [15]. - Nvidia's unmatched GPU technology and Alphabet's AI-enhanced advertising and growing Google Cloud revenue position them as reliable long-term investments in the AI sector [15].

ECB out with a warning kind of it's a hot it's under the radar this morning. They're warning about uh stretch tech valuations. Is that something like the market will care about on a Friday or next Monday.>> Yeah, definitely not caring about it today. But I think it's also just overdone, right. Everyone's worried about stretch valuations.And here's what I think. Go to the data. everyone.It's convenient to compare things to the dot days. But if you take the valuations of the top three stocks in the dot era in ...

Those pointing fingers at Nvidia (NASDAQ:NVDA) for an “AI bubble” are missing the mark. The real overreach isn’t coming from the company that’s actually constrained by compute resources. Instead, it’s the legion of publicly traded and private companies whose valuations are built on Nvidia’s narrative, even though they don’t possess the hardware, the energy infrastructure, or the distribution channels that bring that narrative to life.The harsh reality is that the biggest danger in AI stocks right now is the ...

Company Developments - HP is cutting 10% of its workforce to integrate AI tools, aiming for a billion dollars in productivity savings [19][20][21][26]. - The company is transitioning from pilot programs to specific initiatives across multiple areas, indicating a significant shift towards AI implementation [20][27]. Market Trends - The market is experiencing a resurgence, with stocks attempting to reach record highs as expectations for a 25 basis point rate cut by the Fed increase to 80% from 30% [3][28]. - The ECB has issued warnings about stretched valuations in the US tech sector, suggesting that fear of missing out (FOMO) is driving current market behavior [3][13]. AI Sector Insights - The AI trade is expected to persist for several years, with companies increasingly applying AI to enhance productivity and efficiency [17][18][24]. - There is a notable divergence in stock performance among major tech companies, with Alphabet gaining momentum while Nvidia faces pressure [7][9]. Investment Opportunities - Analysts suggest focusing on major players like Nvidia and Alphabet, as well as solution providers in sectors like healthcare that are leveraging AI [16][17]. - The current AI landscape is characterized by significant demand, particularly for Nvidia chips, with a reported 12 to 1 demand-supply ratio [40][46]. Economic Indicators - The Fed's upcoming meeting on December 10 is critical, with market participants closely monitoring language and guidance regarding future rate cuts [32][35]. - Concerns about a cooling labor market are influencing Fed policy discussions, with implications for inflation and economic stability [35][36].

Michael Bur, who you probably know from The Big Short, is now calling AI a bubble. A recent filing shows that at the end of September, he was betting against two of the biggest AI winners, Nvidia and Palunteer. And it's gotten some attention.>> As far as I can tell, the two companies he's shorting are the ones making all the money, which is super weird. Like, the idea that chips and what you want to short is bat crazy. Even after Nvidia's massive earning speed, Bur isn't budging.So, is Bur's call right. Her ...

RT ARK Funds (@ARK_Funds)Are we in an Al bubble?Watch: https://t.co/CsBf7czKJnIn a new “Fund In Focus,” Tom Staudt, @wintonARK, and @CathieDWood explain why they think today looks more like a 1995-style internet moment than a late-'90s bust—and how Al cuts across every ARK fund. https://t.co/bEdcPnEYFo ...

Core Insights - The CEO of Adecco highlighted that the joint venture with Salesforce, named r.Potential, aims to mitigate the risks associated with an AI bubble by encouraging companies to adopt more practical applications of technology [1] Group 1 - The joint venture r.Potential is designed to push companies towards concrete uses of AI [1]

Core Viewpoint - Alibaba's CEO Eddie Wu dismisses concerns about an AI bubble, emphasizing strong customer demand and the need for increased investment in AI infrastructure [1][2]. Financial Performance - Alibaba reported revenue of 247.8 billion yuan (approximately $34.8 billion) for the quarter ending September 30, marking a 5% increase year-over-year [3]. - Net income fell 53% from the previous year to 20.6 billion yuan, attributed to heavy spending on AI and commerce, with sales and marketing expenses more than doubling [3]. AI Investment and Growth - The cloud division, including the Qwen platform, experienced significant growth, with a 34% increase to 39.8 billion yuan, driven by public cloud revenue and AI-related product adoption [4]. - The company plans to invest aggressively in AI infrastructure, having previously announced a commitment of 380 billion yuan over the next three years, which Wu suggested may be an underestimated figure [4][5]. Market Context - The AI investment landscape is characterized by significant spending from major tech firms, with a collective expectation of $320 billion in capital expenditures this year [6]. - There is a divide among tech leaders regarding the AI boom, with some, like Nvidia's CEO, rejecting the notion of an overheating market, while others express caution about investor enthusiasm outpacing reality [7][8].