Don’t look now fans, but the AI trade – you know, that high-octane corner of the market loaded with new-fangled semiconductor chips, cloud plays large and small, and those mind-bending large-language models – is still kicking up plenty of dust in the market. The question, of course, is whether the trade, which has been in vogue for going on 3 years now, is something we should continue with.
There can be little argument that we’ve definitely seen some bumps lately, what with volatility spiking and many of the big names taking some pretty healthy hits – even after posting sometimes spectacular earnings.
The bears are quick to argue that the trade is over, with some even shouting fraud at every turn. Our furry friends argue that valuations are reminiscent of the dot-com era and that investors need to get out now.
But in my book, this sector’s got legs for the long haul, even if the short-term ride requires investors to remain in their seats with seatbelts securely fastened.
To be sure, it’s a tale of two camps: the bulls charging ahead with visions of world-changing tech, and the bears growling about bubbles and overreach. So, this morning I thought it might be a good idea to break down the arguments from both teams.
The Bull Case: Why AI Can Keep Movin’ On Up from Big Picture Perspective
The primary point from the bull camp is that adoption in AI is just getting started and appears to be snowballing. Everywhere you turn, there it is: Click here to try our AI model.
In addition, our heroes in horns remind us that we must understand that
Bulls Vs. Bears: The State of the AI Trade
