"speculation in unprofitable stocks is less extreme."
"Is this 2000? Are we in a bubble? No,"
"Will AI continue unfettered in leadership? Also no."
"On AI, in our view, investors should get ready for an air pocket,"
"Monetization is to be determined (TBD) and power is the bottleneck and will take a while to build out. So for now investors are buying the dream."
AI-driven growth has supported earnings and smaller IPOs while speculation in unprofitable stocks is less extreme. Aggressive capital expenditures by hyperscalers are increasingly financed with debt, raising investor risk because returns remain uncertain. Monetization of AI initiatives is not yet proven and data-center power capacity is a bottleneck that will take time to build out. Current investor buying behavior reflects optimism about future AI returns rather than established revenue streams. Divergent market forecasts exist, with one outlook implying roughly 4% S&P 500 upside for 2026 while other analysts predict stronger gains of around 10–17%.
Read at Fortune
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