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.
I respect your history. It is amazing how many homes they can hit in a day.
We just got new trucks in our town. As long as the barrels are spaced correctly, the driver never leaves the truck cab.
My grandkids love watching the “trash truck monsters.”
The tech giants are not the ones forcing anything on people.
Efficiency drives cost savings. This drives margin. And that drives profit. Profit makes the world go ‘round.
So it’s not tech giants. It’s “Amy from production operations” who just came back from a conference.
“We just got new trucks in our town. As long as the barrels are spaced correctly, the driver never leaves the truck cab.”
Oh wow... Running way behind times then... When I first got into it we were still hand tossing cans into a commercial front loader fork truck with a bin hanging on the front. Then we got the residential side load trucks and roll carts.
But the hand tossing was extremely physically demanding. One guy driving to each house, getting out, dumping three regular trashcans, climbing back into the truck and driving to the next house to repeat. We had sometimes 450 addresses to pick up a day. 450 times we would have to repeat that get out, dump cans, and back in the truck to the next house cycle.
Boy were we glad to see those sideload trucks and roll carts show up... Your garbage guys are going to have to join a gym now... lol
Since the stock market is THE COMPUTERS....
I am buying on the downturn. AI is here to stay and it will keep expanding, like it or not?
My father was a rate clerk for many years at a truckline and computers did away with that.
Horse were the main form of transpiration and cars did away with that.
Ships were the main form of transatlantic transportation and planes did away with that.
Things change...
I am buying on the downturn. AI is here to stay and it will keep expanding, like it or not?
The question is, what companies will be standing? My bet it will be: Amazon, Apple, and Microsoft. One of them will buy out Anthropic.
NVDIA is one of the big AI investment stocks. A big name investor is going big shorting them and the stock market is following FOR NOW.
The question is, what companies will be standing? My bet it will be: Amazon, Apple, and Microsoft. One of them will buy out Anthropic.
I should have also included Google.
Hard to say, these big changes usually take out a large company that everyone things is too big to fail, because they fail to move aggressive enough to embrace the new technology, example Sears not embracing the internet.
He didn't.
He bought way out of the money puts (a strike of $50 on Palantir and $110 on Nvidia).
In other news, he deregistered his Scion Asset Management firm on November 10, 2025 and returned all external investor capital.
Instantaneous
Well not anytime soon.
NVIDIA just posted their earnings - stock is way up.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.