The Joseph Carlson Show Billionaire Investor Gives Critical Warning About AI CAPEX
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Sep 27, 2025 A prominent investor warns that excessive spending on AI infrastructure could lead to capital destruction. In contrast, another expert argues that we are entering an AI supercycle, highlighting its vast valuation differences from the past. Costco's earnings exceed expectations, although comparable store sales fall short. Meanwhile, the SEC launches a lawsuit against a RadioShack scheme involving celebrity involvement. Finally, Duolingo announces its exciting expansion into chess, featuring engaging new formats and competitive features.
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AI CapEx Risks Massive Capital Destruction
- David Einhorn warns massive AI CapEx could destroy large amounts of capital even if AI proves transformative.
- He questions whether spending $500B–$1T annually will deliver good returns for investing firms.
Supercycle With A Selective Survivorship
- Tom Lee calls AI a supercycle but expects a later shakeout where many companies won't reinvest properly.
- He notes current valuations are milder than dot-com era extremes and some leaders trade at reasonable PEs.
Price In CapEx Uncertainty
- Do account for wasted CapEx risk when valuing AI-heavy companies despite hype.
- Prefer firms whose valuations already price in large buildouts and show sustainable margins.
