The stock market is barrelling toward a ‘show me the money’ moment for AI—and a possible crash
This, in a nutshell, is the narrative of the entire global stock market right now and the conundrum that no tech CEO or asset manager can avoid addressing: Is AI a bubble or not?
Since the current bull market began in October 2022, roughly 75% of gains in the S&P 500 have come from just seven stocks—Alphabet, Apple, Amazon, Meta, Microsoft, Nvidia, and Tesla. Those companies, known as the Magnificent Seven, have a combined market cap of about $21.5 trillion as of mid-November.
Their strategies, Apple’s perhaps excepted, are heavily dependent on AI. But if AI does not deliver the revenues or the efficiencies that Big Tech expects, the fallout in stocks will likely be severe—because the world’s investable assets are currently…
