AI technology stocks
Some people believe that AI technology is going to save the World.
Others believe that AI is just the latest meme that is being used to pump the equity markets higher.
In time we will discover which group is correct.
If we step back and look at the AI meme from a distance, it becomes obvious that the meme has evolved over the course of 2024.
Here are five of the stages in the AI meme:
- “AI is going to save the World”
- “We’re going to need a butt load of GPU cards”
- “For AI to save the World, we’re going to need hundreds of new data centers”
- “To run the data centers, we’re going to need boat loads of electricity"
- “Oops – never mind”
Stage 5 is where we are at right now. Investors are realizing that they may have gotten a little carried away, and they are reevaluating their commitment to AI stocks.
Not surprisingly, there is a great deal of overlap between the Magnificent 7 stocks and the stocks involved in the AI bubble. In fact, they are essentially the same.
These six stocks fall into both categories:
- Alphabet (Nasdaq: GOOGL)
- Amazon (Nasdaq: AMZN)
- Meta (Nasdaq: META)
- Microsoft (Nasdaq: MSFT)
- Nvidia (Nasdaq: NVDA)
- Tesla (Nasdaq: TSLA)
When we add Apple (Nasdaq: AAPL), we have the full set of Magnificent 7 stocks.
In the video, price charts of each of the seven stocks are examined in the daily time frame.
If you remember the Dot Com bubble (and it's bursting), you will find the similarities between that bubble and the AI bubble intriguing.
Watch the video to discover how the AI bubble has reached the same level at which the Dot Com bubble burst.
