Why Today's Nasdaq Doesn't Look Like 2000, Even With AI Fears Rising

Summary AI-linked stocks, including chipmakers like NVIDIA, experienced volatility amid high-profile warnings and public debate on AI risks versus adoption. Despite existential fears, U.S. AI usage is surging, with inference demand and capital expenditures projected to grow significantly through 2027. Big Tech's capital allocation has shifted: free cash flow is near zero, buybacks halved, and net debt rose $194B as AI infrastructure spending accelerates. Valuations are not at 2000 bubble levels, but rising leverage and financing costs warrant close balance sheet scrutiny as capital flows remain AI-centric. hapabapa/iStock Editorial via Getty Images Last week I was in Los Angeles at the All-In Summit along with about 4,000 others, including tech investors, money managers, and entrepreneurs. The ticket wasn’t cheap, but it was well worth it. I This article was written by Frank Holmes 4.62K Followers Follow Frank Holmes is a Canadian-American investor, venture capitalist and philanthropist. He is CEO and chief investment officer of U.S. Global Investors, a publicly traded investment company based in San Antonio, TX, that oversees more than $4 billion in assets (Nasdaq: GROW). He is known for his expertise in gold and precious metals and launching unique investment products. Holmes also serves as executive chairman of HIVE Blockchain Technologies, the first publicly traded cryptocurrency mining company (TSX.V: HIVE). Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA, AMZN 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. 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.