We Are Undoubtedly In An AI Bubble

Uttam Dey 7.29K Followers Follow Summary AI beneficiaries have seen asset prices surge, leading to bubble speculations. Yet S&P 500 Q2 EPS growth of ~50% supports continued exposure. Despite clear signs of an AI bubble, I remain bullish and fully invested in AI and broader markets. I focus on the most profitable AI value chain segments, balancing silicon/equipment with selective software exposure. Staying nimble and agile is crucial; risks like rate hikes and debt issuance could prick the bubble, but opportunity cost of staying underinvested remains high. J Studios/DigitalVision via Getty Images Investment Thesis Yes. You read that right. I do believe we are in an AI bubble. At least according to the textbook definition of bubbles. This week saw a sharp resurgence in concerns about the AI bubble that was back This article was written by Uttam Dey 7.29K Followers Follow Uttam is a growth-oriented investment analyst whose equity research primarily focuses on the technology sector. Semiconductors, Artificial Intelligence and Cloud software are some of the key sectors that are regularly researched and published by him. His research also focuses on other areas such as MedTech, Defense Tech, and Renewable Energy. In addition, Uttam also authors The Pragmatic Optimist Newsletter along with his wife, Amrita Roy, who is also an author on the newsletter as well as on this platform. Their newsletter gets regularly cited by leading publications such as the Wall Street Journal, Forbes, etc. Prior to publishing his research, Uttam worked in Silicon Valley, leading teams for some of the largest technology firms in the world, including Apple and Google. Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, PLTR, IGV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.