Posted on 11/18/2025 9:26:02 PM PST by SeekAndFind
Bitcoin has lost almost a quarter of its value. The tech-heavy NASDAQ index on Wall Street has started to fall. And even leaders of the industry, such as the Google CEO Sundar Pichai, have started to warn about valuations getting out of control. We already knew that AI was driving a boom in investment. But this week there are worrying signs the market is about to crack. The only real question is whether that turns into a full scale crash.
Bitcoin, as so often, is leading the market rout. More than $1 trillion has been wiped off the value of the crypto market over the last six weeks, with Bitcoin itself down by 28 percent since its peak. But that is just part of a wider fall in tech and AI stocks, with the chipmaker Nvidia, which has powered much of the boom, starting to slide, along with many of the other stars of the AI boom.
Plenty of stock market experts are starting to think it is looking like a bubble that is about to burst. Indeed, Michael Burry, who became famous in the crash of 2008 and 2009 for accurately predicting the collapse of the market, has started betting against the sector.
There are many worrying signs. The leaders of the boom have reached extraordinary valuations. Nvidia is up by over 1,300 percent over the last five years, and earlier this year became the first company to reach a market value of $4 trillion. It was quickly followed by Microsoft, which has soared mainly on the back of its stake in the leader of the AI boom ChatGPT, which itself became the most valuable start-up ever with a funding round that made it worth $500 billion.
Meanwhile every company that managed to attach itself to the boom, no matter how spuriously, has seen its share soar. Goldman Sachs estimates that AI stocks have added $19 trillion since ChatGPT was launched, a huge run-up in valuations.
It is starting to look very like the dot com bubble of a quarter century ago. There is little question that AI is a valuable technology, and one that is starting to have a real impact. At the same time, there is far too much hype, no one has quite figured out how to make money from it, and no one has any real idea which of the new companies will turn into the long-term winners.
This week may or may not turn out to be the moment the bubble bursts. In reality, every investment boom has lots of sharp corrections as it soars upwards, and there is nothing very unusual about a fall of 5 percent or 10 percent in prices before the market starts climbing again. It is only when there is a final “melt-up” that it becomes dangerously over-valued. The AI boom does not look like it has reached that point yet. But there is little doubt that it is turning into a classic bubble. It will be very messy when it finally bursts.
“which monetary history has shown us for thousands of years.”
Gold coins hidden in his mother’s basement didn’t help “monetary history” buff Martin Armstrong either. In fact he paid a $200K fine when he claimed ownership of his booty and lost his case.
>> there seems to be more and more dumb people
For decades we taxpayers have paid our public skools to mass produce them.
>> the jobs for dumb people get fewer and fewer, and there seems to be more and more dumb people
I have a brilliant brand new idea! We will always need an underclass to (for example) man our garbage trucks. So why don’t we take control of the birthing process? We can mix in just the right amount of toxins to the formula of a certain % of the populus, so they become basically too stupid to do anything but collect garbage. We’ll compensate for this moral horror by giving them lots of euphoria-inducing drugs for their off hours. What do you think?
I get that. There’s no such thing as “AI stocks” though.
>> “Oh Lord” is not an argument against an inevitable trend.
No, but it is an argument against misplaced Faith. If you know, you know. If you don’t, I pray that you find Christ — take His yoke upon you and learn of Him.
The AI crash is the most predicted crash in my memory, from experts to casual observers. Whether it happens or not, someone’s going to bet the right way and make a lot of money. Personally I’ll keep buying and holding the S&P 500 and watch the show.
I don’t typically agree with you, and I know (GOLD!) where you’re headed (SILVER!) with this (PM!!!), but in this one instance I do agree with you.
They are loading up, they know what is coming. J six pack is always the last to know...
It's over-hyped. Not all it's cracked up to be. Neither a Great Satan nor a New Utopia.
You are funny. Can’t argue with the facts, this generational Gold Bull started two years ago.....exactly as forecast....and has just started...you still have time to prosper.
What would Jesus code?
Markets correct.
AI and its infrastructure, including the grid and nuclear power, have a long way to go before these many companies are fully grown.
But the value of these stocks will continue to go up in the long term.
From time to time, there are corrections.
AI increases productivity, the way computers have, and the internet have. It is a durable, long-term trend, ultimately good.
There will be bad aspects, due to our fallen nature. But good people will bring good things from it, including more jobs.
No need for that. AI, social media, smartphones and our public schools have already made idiots of our upcoming generation.
They are already implementing this.
One of my colleagues missed a credit card payment recently.
Their bank cut off all access to their savings/checking/credit accounts until it was paid.
This is how it will work.
Comply or die!
Exactly right. The markets are in a state of ontological shock right now, as they are in a frenzy of constant evaluation as to what AI means for the economy, jobs, and society. They are bipolar but, for the most part, are behaving quite well (no irrational exuberance and no suicidal despair).
Market pullbacks, like the one we’re seeing now, are healthy. They’re proof we’re not in a bubble.
People need to get a grip. AI is a tool — nothing more. It can be used for good or for harm.
The real issue is this: the AI revolution is going to be more profound than anyone can fully grasp. That uncertainty has everyone rattled. Nobody wants to admit it, but the market is trying to price in something that has no precedent. And that leaves people confused, anxious, and prone to overreaction.
And Peter Thiel pulling money out of AI stocks..........
Such as Palantier that he co-founded and still owns a healthy chunk of.
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