
Thoughtful Money with Adam Taggart
Is The A.I.-Pocalypse Near For Tech Stocks? | Fred Hickey
Jun 18, 2024
Tech stock analyst Fred Hickey warns of a possible market breakdown as top 10 stocks dominate S&P 500 gains. He criticizes the lack of ROI from spending on generative A.I. and compares current valuations to historical asset bubbles. Hickey predicts a painful end to the current tech stock situation and advises caution in investing.
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Quick takeaways
- Investments in Gen AI lack returns, raising concerns about sustainability and profitability.
- Tech stocks are at risk of sharp declines due to overvaluation and lack of tangible benefits.
Deep dives
The Disappointing Reality of Gen AI
Companies are struggling to see returns on the massive investments in Gen AI, with only 5% seeing paybacks. Despite hundreds of billions being poured into large language models, revenue generation remains minimal. Similar to past manias, the lack of tangible results raises concerns about sustainability and profitability.
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