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.
Heheh. Eggzackly.
gold n silver prices maintaining compared to NVidia and other AIs
Peter Thiel no longer involved in Palantier day to day ops?
Don’t panic until you see Paul Pelosi sell.
We don’t really know how active Thiel is in day-to-day. But he is Chairman of the Board and still owns ~70 million shares.
Are you telling me my tulip bulb stash is in jeopardy??
I was assured by my broker this will come back full circle and be worth their weight in gold soon...
Tomorrow morning we will know whether to cash out or go on a buying spree. NVidia was 183 last I checked. I bought it at 179 and I should have gotten out at 212. I didn’t, so I am in it for the long term.
I hear this electricity thing is going to take all the jobs in the textile plants. We cannot have that!!
AI is coming. The value of a stock or two is not changing that. It would be best to get ahead of that train rather Han try to push back on it.
You havent watched garbage get collected lately. The automation in namazing.
Thiel has other economic pursuits these days, as Palantir is humming along nicely with prime FedGuv contracts. Some of them privacy invading facial recognition AI.
The big move for Palantir now is the commercial side of its business. Alex Karp says the commercial side is growing at twice the rate of its government segment (and the gov. segment is growing at 50%).
Agree on Bitcoin & AI. Associating the two as “the same” is a mistake. Although “post quantum cryptography” technologies are already being offered (Infineon, STM, ...) to safeguard against the use of quantum computing to crack encryption.
...not hearing anyone “super concerned” right now.
As far as an “AI stock crash”....unless the demand for its use is dropping, I have a hard time believing it will. So many are using it everyday, it’s not just a promise to be useful. Unlike the dot-com bubble, where anyone with a website concept was getting rich.
I don’t know much about AI or what can be accomplished with it, but I DO know of some things that can be done with it & they are definitely NOT Good at least part of the time. Wouldn’t be sorry to see it go down the tubes.
AI policing in streets and stores will need cheap chips, otherwise they’ll be stolen.
AI weeders, pickers and mowers will need cheap chips.
AI weapons will be a smaller market, and those chips should be suitable for military use.
It’s very important to hit and own the chip price/power sweet spot.
There was a guy looking for accounting auditors recently.
Even something like auditing is currently above AI capability.
Alexa, fix the inflation problem.
Yes, Don
AI is proving, to everyone’s surprise, to be a house of cards.
So many AI results are faulty, erroneous, bogus, that it is proving - at least for now - to be unreliable.
A solid reason for AI stocks to tumble.......
“ Over 98% of the retail clothing sold in the United States is imported. This indicates a very high reliance on foreign textiles for the U.S. market”
We basically have no textile industry. Thank a Free Traitor.
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