"Where some see an AI bubble forming, others see the AI boom, revolution, race, or whatever you'd like to call it, as just getting started. Of course, the truth may lie somewhere in the middle. We might not be at the peak of the AI hype, nor are we at the very beginning of this AI-driven stock market rally. In any case, I think we're closer to the earlier innings than the latter innings, if you want to use a baseball analogy."
"Indeed, the latest quarterly results of Nvidia ( NASDAQ:NVDA) took a bit of gas out of the AI trade for a while when its data center revenues came in below what many bulls expected. In any case, it didn't take too long for other AI firms to pick up the baton and lead the broad markets higher. Indeed, Alphabet ( NASDAQ:GOOG) and Broadcom ( NASDAQ:AVGO) have had a chance to show off their AI muscles to the world."
"In any case, I think it's a mistake to think that Nvidia's milder-than-expected quarter is a yellow light. Going into 2026, we could witness a wave of new agentic AI applications and use cases bolster the AI trade. And Nvidia might not even need to participate in the rally, as some of the lower multiples across the space look to expand."
Some investors see an AI bubble while others view an expanding AI boom, suggesting the market is likely between hype peak and initial stages. Recent Nvidia quarterly results temporarily slowed AI-driven gains after data-center revenues missed expectations. Other companies like Alphabet and Broadcom have since propelled markets higher, indicating broader AI leadership beyond Nvidia. Forecasts suggest new agentic AI applications in 2026 could further drive growth, and valuation multiple expansion across other firms may sustain the rally. Some analysts predict any AI bubble might not burst until around 2027 and could result in a moderate Nasdaq decline rather than a dot-com-scale crash.
Read at 24/7 Wall St.
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