The short answer is yes. We are living in an AI driven stock market and assets bubble. The long answer is the AI bubble could go on inflating for 5-7 years more, according to Wolfteam Ltd.'s projections and estimates.
One of the latest signs of the AI bubble are the 50 mln. USD, 100 mln. USD and even 100 mln. USDs yearly pay packages Mark Zuckerber, Meta's founder and CEO is offering in personal meetings so called leading AI engineers.
Another sign is the 70 billion USDs capital expenditures in AI data centers Meta and the 100 billion USDs CAPEX in AI related infrastructure Microsoft is planning. On top of that Alphabet, the Google's owner is planning 85 billion USDs in capital expenditures on AI data center infrastructure.
Amazon's expenditure on servers and data centers to support AI could come up to to 118 billion USD in 2025 alone.
The big four so called hyperscalers Microsoft, Alphabet, Amazon and Meta are about to spend 400 billion USDs on capital expenditure related to artificial intelligence, AI in the coming year.
'Microsoft plans to unload about $100 billion on AI in the next fiscal year, CEO Satya Nadella said Wednesday. Meta plans to spend between $66 billion and $72 billion. Alphabet plans to spend $85bn, significantly higher than its previous estimation of $75bn. Amazon estimated that its 2025 expenditure would come to $100 billion as it plows money into Amazon Web Services, which analysts now expect to amount to $118bn'
Apple, on the other hand seems to the most viable investment alternative from the Magnificent 7 technology companies Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla in valuation viewpoint, as Apple has largely avoided large AI CAPEX and generates far more in sales and profits from capital outlays than the four AI technology hyperscalers Microsoft, Alphabet, Amazon and Meta.
The four hyperscalers AI technology companies want to satisfy Wall Street equity research analysts' desire for higher artificial intelligence, AI spending with the predominant school of thought is that whichever company has the most powerful data crunching infrastructure will win the artificial intelligence, AI race and get to dominate the ever growing technology market.
All the above signs point that we are in an artificial intelligence, AI driven bubble, according to Wolfteam Ltd.'s projections and estimates. True, we may be living in the fourth industrial revolution driven by AI, but the capital expenditures of the four hypercalers and technology companies altogether are unsustainable for sales and profit, which will ultimately drive the long-term results of the technology companies. The artificial intelligence, AI bubble could be 5-7 years away from popping, in Wolfteam Ltd.'s view.
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