Is there any chance that there will be an AI boom/bust glut, like dot coms and EVs? All I see reported is a straight-line straight up trajectory with no consideration about having too much capacity, or capacity in the wrong place, etc.
In spite of the dot com bust, the internet won in the end as more of our lives revolve around the internet than ever before.
The dot-coms were indeed a bubble because they were selling nothing at all. The companies that figured out how to monetize their online stuff are still with us or were acquired by companies who did. They probably were likely better-capitalized in the first place.
I remember the IPO for The Globe, a hugely popular online forum. Some of the people I 'met' there are still around, at least four have died (the first was an Australian, 'socialworkin'), and I've had dinner with at least one.
It was the biggest IPO of all time up until that time. Within months it was gone. A very cute employee I 'knew' mailed a bunch of promo stuff (hats I think, other stuff) to my house, but alas, never contacted me again.
Meanwhile, the handful of people who'd started it moved to their private islands or whatever and I have no idea what happened with them after that.
As with all stocks, well-run companies go up, just not on a straight line. People who don't get that should not try to direct their own portfolios.
>> All I see reported is a straight-line straight up trajectory
And not to worry, it’ll go up and never come down! I know what you’re thinking, but it’s different this time!
To go bust, there has to be undelivered promises.
So far, AI is exceeding most expectations. Far beyond what was through possible just 1-2 years ago.