The Stocks and Savings Podcast 126. Is The Stock Market An AI Bubble Waiting To Burst?
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Oct 15, 2025 The intriguing topic of whether we are witnessing an AI-induced market bubble takes center stage. They analyze the significant gains in major indexes and question if current valuations are justified. Nvidia's remarkable growth is highlighted as a key player in the AI boom. The conversation shifts to big tech's successful integration of AI and the potential risks of FOMO-driven spending. They also examine the durability of AI demand, drawing parallels to past market bubbles. Finally, the hosts conclude there's no broad bubble, but caution against an AI-focused investment frenzy.
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What A Bubble Actually Means
- A bubble means prices far exceed fundamentals and are driven by speculation rather than real value.
- Not every market high is a bubble; bubbles show clear disconnection between prices and business performance.
Dot‑Com Crash Still Hurt Winners
- The hosts compare the dot-com crash to show how great technology companies still suffered massive share drops.
- Jamie notes Amazon fell ~90% during the dot-com bust despite eventually becoming hugely valuable.
AI Spending Is Real And Growing Fast
- AI adoption is mainstream and spending on AI is substantial and growing rapidly.
- Analysts expect AI market revenue to expand from hundreds of billions to trillions over the next decade.