The S&P 500 now traded at the highest valuation since the dot-com bubble. ...

Goldman Sachs CEO David Solomon on Friday warned that an AI investment frenzy may be overdone – and that stock markets are due for a “drawdown”.Major US stock indexes have notched record high after record high this year on the promise of artificial intelligence, but there’s a good chance that not all of those investments will deliver big returns, Solomon said during Italian Tech Week in Turin, Italy, on Friday.He noted that the internet craze of the late 1990s and early 2000s drew a frenzy of investment in ...

A couple of weeks ago, it was announced that OpenAI is going to invest up to $300 billion in Oracle’s cloud computing.This week, Nvidia committed $100 billion of investments into OpenAI.Oracle is spending billions of dollars on Nvidia’s GPUs.Nvidia invests in OpenAI who then invests in Oracle who then invests in Nvidia and Finkle is Einhorn and Einhorn is Finkle.We’ve reached the mutually assured destruction phase of the AI bubble where the tech giants have decided they’re all in this together. If one is go ...

Core Insights - Businesses that leverage generative AI are expected to experience significant earnings growth over the next decade, particularly smaller companies that can utilize AI to enhance operational efficiency [1][12] - The AI boom has already benefited companies like Nvidia and Palantir, with Nvidia's revenue nearly quintupling from 2022 to 2025 due to increased demand for GPUs [3][5] - The current market environment for AI resembles the internet revolution, suggesting that small-cap stocks may offer substantial investment opportunities as they adapt to AI technologies [6][15] Company Performance - Nvidia's market capitalization has surged tenfold since the launch of ChatGPT, reaching $4 trillion, while Palantir's shares have increased over 22 times in the same period [5] - Both Nvidia and Palantir have seen their revenues and profits soar due to heightened demand for their AI-related products and services [4][5] Market Dynamics - The adoption of AI technologies is creating a potential "AI Gold Rush," with over $1.5 trillion flowing into infrastructure and advanced manufacturing [18] - Historical trends indicate that small-cap stocks may outperform large-cap stocks during technological revolutions, as seen in the 2000s when the S&P 600 returned 85% compared to a negative return for the S&P 500 [14][15] Investment Opportunities - Investors are encouraged to explore small-cap companies that may be undervalued in the context of AI advancements, as these companies could realize significant operational gains [16] - An S&P 600 index fund or the Avantis U.S. Small Cap Value ETF is recommended as a way to invest in small-cap stocks and capitalize on the AI opportunity [17]