"The AI revolution seems to be picking up steam, even as some market strategists, economists, and stock analysts ring the alarm bell over extended valuations and the risks of things ending with a crash. Undoubtedly, opinions vary quite widely on Wall Street, with some very smart people, including Jim Cramer, shooting down AI bubble fears, while others expect a repeat of the dot-com bust."
"Whether or not AI is in a "rational bubble," a "good bubble" (a term coined by Jeff Bezos), or a bad bubble, I do think that investors should play both sides of the coin. Perhaps the risk of AI-driven disruption (especially in the labor market) should capture more focus of investors than the red-hot bull market, which has made some investors nervous that we're overdue for a dip."
"GE Vernova ( NYSE:GEV) has been on an incredible run, gaining more than 350% in the past two years, thanks to its role in powering this AI revolution. The company's latest and greatest gas turbines really do stand out as essential as firms look to do their part to equip power producers for the AI data center-driven electricity surge. Indeed, with the launch of powerful models, like OpenAI's Sora 2, which is now featured on the viral Sora app, models,"
AI adoption is accelerating, prompting intense debate over whether market valuations represent a bubble or sustainable growth, with opinions split between dismissing bubble fears and warning of dot-com–style corrections. Investors are advised to adopt balanced positions, considering both bullish opportunities and downside risks. The labor-market disruption from AI deserves particular attention as a systemic risk. Surging AI compute needs are driving a sharp increase in electricity demand that benefits companies supplying power infrastructure. Energy firms with advanced gas turbines, backlog orders, and grid-planning software stand to gain as data-center power consumption expands rapidly.
Read at 24/7 Wall St.
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