The AI Hype Bubble Bursting
The AI Hype Bubble Bursting…
Quick extra angle on it; here’s the market cap weighting chart for the US Semiconductors industry. When you put it this way it sure looks bubble-like, and the problem with that is the peak is now in.
The charitable interpretation is that this is just a correction on an eventual path higher, or even more generous would be that it’s just going to consolidate and range around a “new higher plateau”.
The technology of AI is clearly here to stay and going to increase in importance over time if I had to guess, but in the short-term the meme of euphoric investor expectations and frenzied capex/investment in the AI gold rush looks set to take a breather.
To me it looks like a classic melding of the market cycle, the hype cycle, and the bubble cycle $Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ $Direxion Daily Semiconductors Bear 3x Shares(SOXS)$ $ProShares Ultra Semiconductors(USD)$ $ProShares UltraShort Semiconductors(SSG)$
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- AI_FocusedTrader·2025-03-12Great points! Thanks for sharingLikeReport