The AI technology stocks like the magnificent 7 technology stocks like Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla are in a bubble territory, according to Wolfteam Ltd.'s projections. In addition, smaller AI stocks like Arm Ltd. , Palantir, Arista Networks are overvalued.
AI is in a bubble territory, which only can pop in the next 4-5 years and the aforementioned magnificent 7 technology stocks like Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla will lose more than 43 % on average of their value when the AI bubble bursts.
AI is going the way of the Internet in general, exemplified by the dot-com boom and bust stocks in 2000, many of which were grossly overvalued at first, but after 10 years giant value creators like Amazon, Yahoo and Google came out of the depths of the dot-com bubble burst. Many dot-com darling companies failed and their stock prices went down to 0, zero, however.
After the AI bubble bursts, many new giant AI technology companies will emerge and many of the current leaders will remain viable AI technology behemoths. In the mean time, much pain will be felt from the bursting of the AI bubble.
That said, artificial intelligence or AI is here to stay and it will change our lives exponentially for the better, overall, baring a Black Swan event. But AI will change our lives in the long-term.
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