NASDAQ is down 2% today, which begs the question: Which force will win the battle for tech stocks? Inflation or AI. On the one side, today’s hot CPI number is a headwind for tech stocks. Rates higher for longer have a negative impact on higher multiple companies. On the other side, AI companies will see increased growth rates and margins in the years to come. Putting those two forces together, the AI tailwind is going to win hands down. We’re at the start of a 3-5 year tech bull market.
@munster_gene CPI is not that hot. More in my latest thread: x.com/MBjegovic/stat…
@munster_gene CPI is not that hot. More in my latest thread: x.com/MBjegovic/stat…
@munster_gene Hi Gene! Give us a few names that you would be buying today for the next 3-5 years.
@munster_gene Also, Milton Friedman said interest rates don’t control inflation because consumers don’t cause inflation. Inflation is caused by excessive government spending.
You wouldn’t know AI if it hit you over the head. LLMs are of limited utility. It will a decade or more before AI really generates material incremental revenue. This is a major bubble. And it’s because people like you have such a limited knowledge on the topic, yet keep pumping. It’s dot com city all over again
Internet bubble redux. It is true AI is the future. But the current regenerative AI that uses tremendous amount of parallel processing chips are very limited in true industrial use, which it requires precision and logics rather than creativity and fuzziness. The true player to watch is Tesla’s DoJo, totally different from regenerative language model, but be able to produce reproducible, precise and accurate outcome, exactly what the industry needs. The AI fad still does not associate Tesla with the current craze. That may be the saving grace for this bubble.
@munster_gene Repeat after me ‘ HIGH RATES DO NOT AFFECT BIG CAP TECH’
@munster_gene Today upward 's momentum will return , so we trade yesterday's highs - Nasdaq had to fill the gap from Friday- & did it in Nasdaq fashion, so what should be a Buy looks like a sell