NVIDIA market cap has so far increased more than 80 percent in 2024. Jonathan through RAA/Nurfoto Getty Image
As AI runs large technical shares, caution is being taken among experts. Last week, the chief economist of Apollo, Torsten Slok, said that today’s top 10 companies have overwelled more than those during the technical bubble of the 1990s, where NASDAQ has fallen by 740 percent by 2002 before 2002 800 percent saw an increase.
Goldman Sachs recently issued a note in which the unloaded tech stock was unloaded at the fastest speed to the hedge funds, which ended on 23 February. A separate research note by Morgan Stanley referred to a uniform trend.
Many experts agree that today’s stock market looks like one before the 2000 dot-com crash. Bank of America’s Michael Hartnet called the current stock market a “baby bubble”. Similarly, economist David Rosenberg said that the markets are responding to companies advertising their AI capabilities, such as the 90s tech stock “just because they would appreciate ‘.com”. ,
The center of the AI market boom has “spectacular seven” companies, made from Apple (AAPL), Amazon (AMZN), Alphabet (Gogal), Meta (Meta) platforms, Microsoft, NVDia and Tesla (TSLA). These seven stocks alone represent 30 percent of the market cap of S&P 500. Last time S&P 500 This top-ivory market cap weight was 1970, per exios.
Microsoft, Meta, Alphabet and Apple each described the recent earnings in AI among their highest priorities in calls and reports. Meta CEO Zuckerberg said that his company’s main goal is moving forward “the most popular and most advanced AI products and services would be”. Microsoft has faced its success in being an early investor of Openai. Amazon has recently invested $ 1 billion in the AI robot start-up. Tesla had long promised complete self-driving, releasing an updated beta version last month that takes advantage of better nervous network technology.
NYU professor Gary Marcus said that AI capabilities can be overheap, AI pointing to the continuous issue of hallucinations, where systems generate or distort facts. He explains in his option in detail, “The hallucinations are in their silicon blood … to assume that the problem will soon disappear, ignoring the history of 20 years.” This problem is the argument of Marcus, can obstruct the AI’s ability to give an expected price to the high -financial assessment companies. Marcus indicates similar AI products in the past, such as Facebook’s AI Assistant and IBM Watson.
One of the greatest boundaries of AI capabilities, as described by researchers in Cambridge, is “the curse of the recurrence”, which indicates that AI-borne information trained on information AI causes laps in its knowledge and less useful results . As the Internet fills with AI-related materials, LLM and Text-to-video models that train on web-scraped data will do plateau in their genital capabilities. Source for AI can be manual and expensive to go out of web-scrapping for sources training materials.
Despite these obstacles, AI’s transformative ability cannot be rejected. And many respected financers, including Bridgewater Associates founder Ray Dalio and JP Morgan Chess CEO Jamie Dimon, do not see AI bubbles. The alphabet CEO Sundar Pichai described the “AI technique more darker” for humanity than electricity or fire. The McKinse Global Institute estimates that AI may grow up to $ 4 trillion in corporate profits worldwide.
While Nvidia symbolizes enthusiasm around AI, comprehensive benchmarks such as MSCI USA IMI robotics and AI select net USD index have seen a higher gain of 47 percent. Goldman Sachs also wrote to customers in a note that call options on Nvidia are at a two -year high level, showing positive speculative status on stock.