The AI Bubble Is Bigger Than Ever And The Cracks Are Starting To Show

AI investment has surged, with hyperscaler spending revised to $673B in 2024 and projected to reach $892B by 2028.

Despite Alphabet's rapid revenue and cloud growth, market concerns over overinvestment led to a $288.9B drop in market cap post-earnings.

Measured productivity gains from AI lag reported figures, and GDP growth is heavily reliant on AI-related capital expenditures.

Rising semiconductor prices, energy demand, and weaker job markets signal mounting risks reminiscent of past bubbles; caution is warranted.