Rachata Amnataree/iStock via Getty Images “Party like it’s 1999” is a phrase made famous by the musician Prince’s 1982 song, which experienced a renaissance amid Y2K fears and has since entered the lexicon meaning to celebrate intensely because the future is uncertain. The phrase seems apt to describe the current investment landscape, given the similarities between the late 1990s dot-com bubble and today. These include lofty valuations, strong market momentum and a focus on growth stocks. However, we be ...

Goldman Sachs' logoMichael M. Santiago/Getty Images AI hype has seized the stock market and been compared with the dot-com bubble of the late 1990s. Investors are acting differently this time, Goldman exec Ben Snider said in a Bloomberg podcast. They are focused on tangible, near-term earnings rather than speculative long-term potential, he said. Twenty-five years after the dot-com bubble saw internet hype grip markets — and then spectacularly unravel — AI is once again fueling market frenzy. Ho ...

Core Insights - The article discusses the potential risks associated with the current AI market, particularly focusing on Nvidia and Palantir as leading companies in this sector [1][3][24] Company Analysis: Nvidia - Nvidia has become a dominant player in the AI space, recently surpassing a market cap of $5 trillion and holding over 90% market share in GPUs deployed in enterprise data centers [2][6] - The company is focused on innovation, with plans to release a new advanced AI chip annually, which may help maintain its competitive edge [7] - Nvidia's CUDA platform enhances customer loyalty by maximizing the potential of its GPUs, particularly in training large language models [9] Company Analysis: Palantir - Palantir's software platforms, Gotham and Foundry, have no direct competitors, providing a unique value proposition that drives sales and profit growth [10][11] - Gotham is utilized by the U.S. government for military planning and data analysis, while Foundry helps businesses streamline operations [10] - Palantir's strong operating cash flow and double-digit sales growth are supported by its competitive advantages in the market [11] Market Trends and Historical Context - The article draws parallels between the current AI boom and past technology bubbles, suggesting that overestimation of technology adoption rates could lead to a bubble-bursting event [13][14] - Historical data indicates that leading companies often experience unsustainable price-to-sales (P/S) ratios, with Nvidia and Palantir currently at P/S ratios of 23 and 120, respectively [19][21] - The article warns that while Nvidia's P/S ratio is below the unsustainable threshold of 30, Palantir's high ratio cannot be justified, indicating potential risks for both companies in the future [21][22]

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Bitcoin’s valuation is “ridiculous,” according to “The Big Short” investor Michael Burry, who predicted the 2008 housing market crash years in advance. “I think that Bitcoin at $100,000 is the most ridiculous thing,” Burry told author Michael Lewis in an episode of the podcast “Against The Rules: The Big Short Companion” last week, adding that “it’s not worth anything.” Don't Miss: Missed Nvidia and Tesla ...

Bloomberg Cisco Systems Inc., a bellwether stock of the dot-com technological revolution, has returned to a record after a quarter century, thanks in part to the artificial intelligence spending boom. Shares rose 0.9% to $80.25 on Wednesday, taking out a peak that stood for more than 25 years. The stock’s March 27, 2000 high is viewed by many as the height of the dot-com bubble and marked the high-water mark for the tech-heavy Nasdaq 100 Index until late 2015. Most Read from Bloomberg “It’s a quaint r ...

Historical headwinds may prove insurmountable for Wall Street's hottest artificial intelligence (AI) stock in the new year.Roughly 30 years ago, the advent and mainstream proliferation of the internet began charting a new course for corporate America. It opened new doors for businesses to sell and market their products and services, while also breaking down information barriers that had previously existed on Wall Street between professional and retail investors.For decades, investors have been waiting (some ...

Unfortunately, investors have a terrible habit of focusing on the first common trait and overlook the fact that innovations require ample time to develop. For 30 years, investors have persistently overestimated the adoption, utility, and/or optimization of new technologies, resulting in lofty expectations not being met.The need for the underlying technology to mature and evolve.Over the last three decades, investors have been privy to a number of hyped technology trends, including the internet, genome decod ...

Group 1 - The ongoing AI boom is drawing parallels to the dot-com bubble, particularly with Nvidia being compared to Cisco during that era [1][2][6] - Cisco's stock took a significant hit when the dot-com bubble burst, and it took 25 years for the stock to recover to its 2000 peak, raising concerns about a potential AI bubble [2] - The emergence of numerous AI startups is generating excitement but also concern among investors, reminiscent of the startup surge during the dot-com bubble [3][4] Group 2 - High-profile tech visionaries are leaving established companies to start their own AI ventures, indicating a strong belief in the potential of AI [5][6] - The rapid growth of AI startups may lead to challenges in talent retention for larger tech firms [6]

Michael Burry of "The Big Short" has pivoted from investing to financial writing. Burry's first two posts on his new Substack discuss his history as a blogger and skepticism of AI. The market veteran warns of overinvestment and says Nvidia is the Cisco of this tech boom. Michael Burry of "The Big Short" fame has pivoted from investing to writing, launching a paywalled Substack called "Cassandra Unchained." Burry says the blog, which has amassed more than 23,000 subscribers since it went live on Sun ...

Core Insights - Michael Burry has shifted focus from investing to writing, launching a paywalled Substack called "Cassandra Unchained" to share his analytical insights on stocks, markets, and historical patterns [1][2] - Burry's initial posts address the AI boom, which he critiques as a "glorious folly" and plans to explore in depth over several entries [2][3] Industry Analysis - Burry compares the current AI boom to the dot-com bubble, arguing that despite the perception that today's companies are profitable, the underlying issues of overbuilt supply and insufficient demand remain similar [3] - He identifies the leading companies in the current AI landscape as the "five public horsemen" — Microsoft, Google, Meta, Amazon, and Oracle — alongside emerging startups like OpenAI [3] - Burry draws a parallel between Cisco during the dot-com crash and Nvidia in the current market, suggesting Nvidia is central to the AI boom despite its potential risks [4] Company Developments - Burry has closed Scion Asset Management's SEC registration, indicating a shift away from managing outside capital [5] - His recent return to social media includes commentary suggesting that the AI boom may be a bubble, advising caution in investment strategies [5]