The magnificent 7 stocks, namely Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla are overvalued on the AI bubble.
As with most new technologies artificial intelligence is going through a bubble, which after popping a normal growth path will ensue, much like with the internet dot-com bubble and the subsequent growth and ubiquity of the internet.
Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla are overvalued by 40 %, 54 %, 15 %, 32 %, 35 %, 62 % and 80 % respectively, according to Wolfteam Ltd.'s projections and estimates.
The market is just interpolating too high growth and profitability rates for the The magnificent 7 stocks, namely Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla.
NVIDIA and Tesla are the poster children of the Artificial Intelligence, AI bubble, especially.
Tesla' intrinsic worth is just 120 billion USD, according to Wolfteam Ltd.'s view. And this is the value of the electric vehicle engineers and Tesla's AI engineers and software engineers, finance and other staff.
NVIDIA, with its 1.63 trillion USD market capitalization is also grossly, by 62 % overvalued on the artificial intelligence boom.
Yes, AI will change our world but the process will be much more gradual than market participants seem to forecast.
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