Investing Experts Don't fear AI bubble, there will be winners - Tech Contrarians
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Sep 30, 2025 Sara Awad, a tech analyst at Seeking Alpha, shares her contrarian insights on the booming AI sector. She critiques the sustainability of the massive cash flow to companies like Oracle and Nvidia, cautioning against blind optimism. Highlighting China’s rising influence in AI, she argues that the market should not underestimate its impact. Awad also discusses Intel’s potential to elevate its market cap and how a US-TikTok deal could reshape ad strategies. Ultimately, she believes selective investments will yield winners amidst the speculative AI bubble.
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Big Deals Mask Sustainability Risks
- Massive AI-related deals are boosting sentiment but raise sustainability questions.
- Sara Awad warns the current spending pace may not translate into long-term returns.
Follow The Money First
- Trace where AI dollars are actually going before investing.
- Question whether large commitments (e.g., Oracle/OpenAI) will be fully spent or sustained.
Complex Models Challenge CapEx Logic
- Technical limits on complex inference may limit the need for extreme infrastructure spend.
- Sara cites research suggesting larger models can struggle on complex tasks, complicating CapEx justification.