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All articles tagged with #bubble

AI Boom or Bust: Lessons from the Dot-Com Era for Today’s Tech Rally
economy5 days ago

AI Boom or Bust: Lessons from the Dot-Com Era for Today’s Tech Rally

The author argues the current AI investment surge blends real transformation with speculative risk, mirroring past bubbles like the dot-com era and the housing boom: rapid growth and massive leverage from AI champions (Anthropic, OpenAI, Nvidia, Alphabet) fuel lofty valuations, but eventual supply catch-up and tighter financing will likely burst the bubble, followed by a longer-term restructuring; investors are urged to pursue opportunity with caution and risk capital they can afford to lose.

via Business Insider|
#ai#bubble#economy
AI Bubble Watch: Dean Baker Warns of a Burst Ahead
economy18 days ago

AI Bubble Watch: Dean Baker Warns of a Burst Ahead

Economist Dean Baker argues that AI hype is inflating a bubble similar to the dot‑com era: productivity gains are not yet materializing, data‑center financing is riding on debt, and a bust could hurt workers and worsen wealth disparities. He warns against relying on hype or policy gimmicks like a government AI fund, and instead advocates traditional worker protections (shorter workweek, stronger unions, higher minimum wage, universal healthcare) to insulate the public from potential shocks.

via The Real News Network|
#ai#bubble#economy
Treasury Draft Flags AI Boom as Bubble Risk with Broad Economic Ripples
business1 month ago

Treasury Draft Flags AI Boom as Bubble Risk with Broad Economic Ripples

A Treasury draft warns the AI market could resemble a dot-com bubble, with a downturn potentially slowing growth and sending ripple effects through stocks, private credit, data centers, cloud providers, chipmakers, and utilities; while AI firms today are more mature, the financial system remains highly dependent on continued productivity gains and profitability, and regulators may need to act—though the document is still awaiting formal approval and officials publicly defend AI.

via News of the United States - NOTUS|
#ai#bubble#business
Are AI IPOs Signaling the End of the AI Boom?
business2 months ago

Are AI IPOs Signaling the End of the AI Boom?

Michael Hiltzik argues that the planned IPOs of OpenAI and Anthropic look less like a dawning AI era and more like insiders cashing out as hype outpaces profits, with costly data-center builds, per‑token pricing, and power-grid constraints undermining economics. The piece likens the moment to the dot‑com crash and warns ordinary investors that IPOs tend to favor sellers, while acknowledging some view AI as a longer, structural wave.

via Los Angeles Times|
#ai#anthropic#bubble
SpaceX IPO Sparks Duelling View on AI Boom: Bubble or Breakout
business2 months ago

SpaceX IPO Sparks Duelling View on AI Boom: Bubble or Breakout

SpaceX's IPO raised about $75 billion at a $1.75 trillion valuation, the largest ever, and kicked off a debate over whether the AI spending boom is a bubble or a sustainable growth cycle. Bears warn that richly priced, loss‑making IPOs cluster near market tops amid massive AI capex from the mega‑techs, with mixed returns from pilots and data showing little immediate profitability. Bulls counter that demand is real and capacity constrained, with cloud/backlog growth at Alphabet, Amazon, and others, and Goldman Sachs projecting AI spending toward $1.6 trillion annually by 2031. The verdict remains unsettled, suggesting a balanced, diversified approach for investors.

via Yahoo Finance|
#ai#bubble#business
US equities show bubble signals as volatility spikes and froth widens
markets4 months ago

US equities show bubble signals as volatility spikes and froth widens

Bank of America derivatives strategists warn the U.S. stock market is edging toward bubble-like conditions, with Nasdaq-100 realized volatility at dot-com-era highs and froth building in pockets such as semiconductors; while the overall market isn’t yet in a bubble, other assets like the Kospi and the Bloomberg Commodity Index show extreme bubble-like dynamics. They suggest momentum plays via QQQ call spreads and hedges like VIX call spreads to navigate the risk amid a momentum-driven rally in megacap tech.

via MarketWatch|
#bubble#derivatives#equities
Allbirds’ AI Pivot Triggers Wild Stock Ride as Hype Outsprints Reality
business4 months ago

Allbirds’ AI Pivot Triggers Wild Stock Ride as Hype Outsprints Reality

Allbirds stunned markets by announcing a pivot to AI infrastructure called 'NewBird AI,' sending shares up over 700% before tumbling about 35% as investors questioned whether a shoe company can monetize AI; the firm previously sold assets for $39 million and has seen its market value collapse from around $4 billion in the past, fueling warnings that AI enthusiasm is fueling a bubble rather than solid fundamentals.

via Futurism|
#ai#allbirds#bubble
AI Boom Faces Reality Check: The Bubble Could Burst
markets5 months ago

AI Boom Faces Reality Check: The Bubble Could Burst

AI investment has surged to about $1.03 trillion over six years, but broad economic returns remain elusive; gains are concentrated in information technology and financial sectors, while most non-tech industries show little productivity or profit gains from AI, raising questions about ROI; with the S&P 500 trading at historically high multiples and earnings yields below Treasuries, current market conditions resemble a bubble.

via Seeking Alpha|
#ai#bubble#investing
Miami (Ohio) earns at-large bid as bubble chaos fades into the bracket
sports5 months ago

Miami (Ohio) earns at-large bid as bubble chaos fades into the bracket

Miami (Ohio) earned an at-large invitation to the 2026 NCAA Tournament as a No. 11 seed with a First Four date against SMU, despite going 31-0 in the regular season but never playing a quad-one game. The bubble was exceptionally weak, limiting true snubs, and the committee’s decision was viewed as largely correct. The pick may set a precedent for mid-majors pursuing at-large bids in the future, as other teams like Oklahoma, Auburn, San Diego State, and Indiana missed out while Miami capitalized on the overall bubble softness.

via SB Nation|
#at-large-bid#bubble#miami-ohio
Auburn’s NCAA Bid Falls Short After Late-Season Slide
sports5 months ago

Auburn’s NCAA Bid Falls Short After Late-Season Slide

Auburn missed the NCAA Tournament for the first time since 2020-21, finishing 17–16 (7–11 SEC) despite a rugged schedule (No. 3 strength of schedule, 17 Quad‑1 games) and multiple quality wins. A 3–9 late-season stretch, including losses to Ole Miss, Mississippi State and other bubble teams, left their at-large bid out of reach. Their resume still included key wins (Kentucky, Texas, NC State, Florida on the road), but the overall body of work wasn’t enough, and Auburn now shifts to the NIT where they’re expected to be a No. 1 seed hosting games."

via On3|
#auburn#bubble#college-basketball
Duke Leads Narrow NCAA Bubble as Bracketology Tightens Toward Selection Sunday
sports-college-basketball5 months ago

Duke Leads Narrow NCAA Bubble as Bracketology Tightens Toward Selection Sunday

With Selection Sunday two days away, the latest bracketology projects have Duke as the overall No. 1 seed and a shrinking bubble as teams press their cases. Iowa State climbs to a 2-seed after a Big 12 win, while Arizona, Florida, and Michigan remain near the top seeds depending on late results. Seedings continue to hinge on NET rankings and quadrant data, with daily updates tracking last Four In/Out and potential top-seed swaps ahead of Selection Sunday.

via On3|
#bracketology#bubble#ncaa-tournament
Final Bubble Tightens as Auburn Falls, SMU and Texas Hover
sports5 months ago

Final Bubble Tightens as Auburn Falls, SMU and Texas Hover

Auburn falls out of SI’s projected bracket at 17–16, while SMU and Texas cling to at‑large hopes. NC State and UCF look safe, but several bubble teams—Seton Hall, SDSU, New Mexico, Oklahoma—still must win to feel secure. Friday’s bubble games (VCU–Duquesne, Seton Hall–St. John’s, Oklahoma–Arkansas, SDSU–New Mexico) could reshape the field as SI provides a region‑by‑region projection and notes that final bids and seeding will hinge on the next 1–2 days of results.

via Sports Illustrated|
#basketball#bracketology#bubble