Billionaire Ken Griffin Says We May Be in a Bubble. Here’s What History Says Happens Next.
Artificial intelligence (AI) stocks have driven stock market gains over the past several years amid excitement about this technology’s potential. Some of these companies, such as chip designer Nvidia and cloud services provider Alphabet, have already started reaping the rewards. Demand for their AI products and services has supercharged revenue growth and their stock performance.
But the AI story isn’t over, and to support ongoing growth, major investment is needed. And that’s exactly why tech giants Alphabet, Amazon, Microsoft, and Meta Platforms aim to spend more than $700 billion on the infrastructure ramp-up this year. Those plans have sparked concern among investors, though, with the idea that the revenue opportunity may not justify such spending levels.
In fact, some investors have even questioned whether a bubble may have formed. And one of those investors is Ken Griffin, founder and chief of Citadel. We’re “almost certainly” in an AI bubble, the billionaire said in an interview with Bloomberg.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.