Is AI a bubble or the next industrial revolution?

[Jason Voorhees]

@Alexanderr

 

[SecularIslamist]

It's a bubble but because everyone is saying it is it probably won't pop anytime soon. It's best to focus on the trends that AI is ignoring like biotech - the entire industry is in the shitter but one of the main beneficiaries of AI. Also materials.

Its not a bubble bc a lot of companies have revenue the .com bubble had almost zero revenue
Its a revolution but there are countless stock that are overhyped and ther pe ratio looks horrendous

Yeah the megacaps have good revenue and AI is definitely helping other companies, but there is a lot of garbage companies riding this wave and growth companies that do have horrendous PE ratios like Palantir and totally bullshit companies pre-revenue, like quantum and nuclear stocks. Similar to the SPAC bubble of 2021.

@SecularIslamist Is going long blue chip ai companies and shorting smaller caps a move?

Yeah blue chip strong as ever. I wouldn't dare short any of these behemoths - even though I do think one of them will end up like IBM or Kodak in the 90s. They've grown so big they are now competing with each other in each other's industry. Not to mention China is taking a piece of the pie as well...

Regarding small caps - I've seen people say the opposite. The Russell 2000 reached a new high I believe. Long term it's definitely fucked I'd say but short term if the bubble continues might be good.

 

[algerianmogger]

I already discussed how trillions of dollars are at stake over this question. So let's have a discussion about this

How OpenAI controls the entire market explained by yours truly

I recently made a thread about this https://looksmax.org/threads/openai-hits-500-billion-making-it-the-worlds-most-valuable-startup.1642467/ But still some retrads like @looksmaxxed @romanstock can't stop coping with their WN drivel and fail to understand the broader picture. The entire US...

looksmax.org

The Al hype cycle has all the hallmarks of a classic bubble. with trillions poured into data centers and chips while actual revenue from Al applications lags behind.

OpenAl is literally burning cash millions of dollars everyday funded by inflated valuations that echo the dot.com crash. The same promises of world changing tech masked unsustainable losses.

But Al hype isn't just speculation. There's is actually demand for AI services and is ushering in a paradigm shift comparable to the industrial revolution which is transforming industries from healthcare to finance. Unlike fleeting trends many people claim this isn't temporary hype it's the architecture of future innovation, where machines don't just process data but understand and adapt to human needs.

What do you guys think? Is AI a bubble or a boom on the scale of industrial revolution? One of the most hotly debated topics in 2025




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I'm not Low IQ but im fucked either way

 

[Alexanderr]

It's both, question is really just how long the bubble will last and if it's as much a revolution as some say. Everyone knows it's both. I'm actually hoping it's not that much of a revolution.
If it's as all encompassing as some say I don't see how we don't land in a dystopia. I don't trust the people owning the machines and cloud to not abuse it.
But unlike in the past where chiefs and feudal lords were fallible, human and mortal, this would be like a God. If we land in slavery, we're never coming out of that.

 

[Jason Voorhees]

@DBDR

 

[1966Ford]

There is a bubble for sure. valuations are clearly stretched NVDA's P/E north of 70-80 even after record profits says a lot. But the tech isn't going away. LLMs are already in 78% of enterprises. The survivors (Google, Microsoft, maybe Anthropic) will dominate post crash.
It's like Amazon in 2001 stock crashed 90% but the shift was real.

@1966Ford

I agree. This bubble will lead to a revolt and will become a necessity for human life, for sure.