As I predicted over a year ago watch for AI bust third quarter due to realization of exposed security risk and data center cost.
6 replies (most recent on top)
@bp Says the guy who can't properly write sentences. Lots of investors watch to see if the C-Suite starts selling shares, it's a bearish sign.
The cracks are forming. A couple of months ago you wouldn't see Ed Zitron on CNBC poking holes in the AI investment thesis, but you do now.
He's right when he says AI is a "$30 bln market masquerading as a $1 tln market". There is some money there, but nowhere near what the current levels of investment and debt demand.
Get ready for companies to soon start talking about "rationalizing" AI, Cisco being a follower will do so too.
Micron, Nvidia, Intel, many others will decline. Oracle is uniquely sc--wed, they have bet the farm on data center build out for a market that might not even be there.
Get ready for more and more layoffs, its the fastest way for tech companies to balance out the bad investments
The AI bubble bust is around but not because CEOs are selling shares. AI as an industry hasn’t made a dime of profit in the last 4 years of hullabaloo and hype. All commercially available LLMs hallucinate at least around 70% ( Google that) . The infrastructure and resource cost, including training , is not something that businesses have seen absorbed in profit in their ROI. Wall St. is not well known for its patience. The 5 year mark is around the corner and the sword of Damocles is getting lower. Déjà vu of dotcom bust. It will not crash, but will very likely go down and plateau out following the Gartner hype curve.
@a9 how slow are you? an executive selling some of their shares doesn't mean they're betting against the company. large portions of their earnings are tied up in shares. you think jensen or andy jassy or tim cook never sell shares?
@a8 CFO, Oliver, and TS are all selling their shares. G2 sold off months ago. Why would they sell if Cisco is so great? lmfao
Can't wait. Will short the sh-t out of CSCO.