Global stock markets fall sharply over AI bubble fears
theguardian.com
theguardian.com
Oh, no! In almost a month? What a newsworthy development!
I will say, it's gonna be different looking at the market. So much of that rise is now 30 days old, a massive jump upwards. Looking at the 1mo chart made the day to day feel pretty irrelevant, up or down whatever: look at this huge net change. But now at the 1mo point that receeda into the rear view.
But China just built a massive navy so many are expecting a blockade of Taiwan in the next few years. China also blocked chip exports in the Nexperia spat with the EU, showing their hand. On top of tight rare earths export controls. It's very rational to buy as many chips as possible while they are available. And Wall Street is very happy to finance all this.
The problem is the rest of the economy is out-competed for financing at times of economic distress. And they are over-leveraged, too.
It seems the powers that be decided to sacrifice the wider economy and American workers. Bailouts for me but not for thee.
It means that any small slip up could have a sizeable impact on the stock, as that would be underperforming investor expectations.
At least Nvidia makes something real instead of hot wind, so I doubt their stock will fall that much if the AI bubble bursts. Maybe 10/15% at most.