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Chip Stocks under AI Bubble: It's all about narrative
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‘Price bubble’ in A.I. stocks will wreck rally, economist David Rosenberg predicts

Economist David Rosenberg, a bear known for his contrarian views, believes enthusiasm surrounding AI has become a major distraction from recession risks.
This week, $NVIDIA(NVDA.US)$ ’s blowout quarter helped drive AI excitement to new levels. The chipmaker boosted its yearly forecast after delivering a strong quarterly earnings beat after Wednesday’s market close. Nvidia CEO Jensen Huang cited booming demand for its AI chips.
In a recent note to clients, Rosenberg warned the rally is on borrowed time.
“There are breadth measures for the $S&P 500 Index(.SPX.US)$
that are the worst since 1999. Just seven mega-caps have accounted for 90% of this year’s price performance,” Rosenberg wrote. “You look at the tech weighting in the S&P 500 and it is up to 27%, where it was heading into 2000 as the dotcom bubble was peaking out and soon to roll over in spectacular fashion.”
In a recent note to clients, Rosenberg warned the rally is on borrowed time.
“There are breadth measures for the S&P 500
that are the worst since 1999. Just seven mega-caps have accounted for 90% of this year’s price performance,” Rosenberg wrote. “You look at the tech weighting in the S&P 500 and it is up to 27%, where it was heading into 2000 as the dotcom bubble was peaking out and soon to roll over in spectacular fashion.”
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  • Dwight K Schrute : Yeah see there are also measures that haven’t been this high in history the only way a recession is coming soon is if the debt ceiling deal doesn’t happen

  • lightfoot : Recession is inevitable as long as we follow the ridiculous no common sense spending without reasons to disagree but this stock is the future, will develope and replace even your job.   We are looking at Space Age technology that even Einstein would be amazed.  Man vs machine.

  • Dwight K Schrute lightfoot: are u seriously talking about ridiculous spending? That’s pretty ignorant not talking about what actually got us into the position to spend all this money. Have you ever thought why all these banks crashed, why inflation sky rocketed? Maybe because of no common sense laws for the banks set by the republicans that made it so banks could give more loans out and at a much faster rate FOR WHAT REASON now the banks are overexposed and LOOK WHO HAS TO TIGHTEN BANKS. I’m not a huge trump hater but my god he is the reason for the market being where it is. And now the only thing that is stopping a bull market is the debt ceiling deal which the republican party doesn’t want to agree to unless biden stops price cuts even though they are bluffing LMAO. It really is so sad how many people know nothing about how our economy works. Read up buddy

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