Thank god the bubbles finally starting to burst. I am tired of hearing about ‘AI’.

That's a weird take given the actual numbers and relative results per company, but ok.

Microsoft's price didn't change much at all and is still trading at a 35 P/E ratio (17% higher than Apple's) despite being neck and neck in the race for the largest company in the market and allegedly not having its AI efforts actually change product usage. Clearly the market is still pricing it as if it's going to grow more somehow.

AMD is down, but since when is AMD an "AI company"? That's Nvidia through and through, who is still double digit percentage points up from a month ago, and trading at a 81 P/E ratio. The market losing faith in Nvidia's competition seems more like the opposite of this headline, given it's the key area where Nvidia has a market advantage over AMD.

Google, whose revenue is 90% ads, is down in response to falling short on ad sales. Which if anything may be a result of increased chatbot usage reducing search volume and Google's chat offering being the Bing of AI chatbots.

This is clickbait analysis.

What a clickbait "article". The whole stock market is correcting insane growth of last year and in fact the company with the biggest AI investments (Microsoft) crashed the least!

It's rewording the real article from Reuters: https://www.reuters.com/technology/ai-companies-lose-190-billion-market-cap-after-alphabet-microsoft-report-2024-01-31/

All scams come to an end when they run out of marks to steal from.

Look at the reuters article cited: https://www.reuters.com/technology/ai-companies-lose-190-billion-market-cap-after-alphabet-microsoft-report-2024-01-31/

Jan 30 (Reuters) - AI-related companies lost $190 billion in stock market value late on Tuesday after Microsoft (MSFT.O), opens new tab, Alphabet (GOOGL.O), opens new tab and Advanced Micro Devices (AMD.O), opens new tab delivered quarterly results that failed to impress investors who had sent their stocks soaring. The selloff following the tech giants' reports after the bell underscored investors' elevated expectations following an AI-fueled stock market rally in recent months that propelled their shares to record highs with the promise of incorporating the technology across the corporate landscape.

I don't know that I would say this has anything inherently to do with AI...

The reuters article for AMD specifically: https://www.reuters.com/technology/high-flying-chipmakers-hit-after-amds-forecast-falls-short-2024-01-31/

Jan 31 (Reuters) - High-flying semiconductor stocks slipped on Wednesday after Advanced Micro Devices' (AMD.O) disappointing current-quarter revenue forecast added to investor worries over sluggish demand for non-AI chips

...

That overshadowed the company near doubling its AI processor projections to $3.5 billion for 2024.

This is such clickbait. They just added up the total stock decline in every company that has any involvement in AI. They call Google and Microsoft AI companies.

No shit that was a bubble. Fun for all of two seconds but application in its current form is niche/sketchy at best. There is lots of promise for the future of AI but right now it just makes things more complicated and end results are unreliable.

The companies didn't lose that money. Their investors didn't even lose that money. A number went down temporarily, that's all.

Maybe they should try making products that work instead of trying to shove ads down our throats? How's that for a business model: give the customer what they want?

I remember YouTube videos or podcasts where presenters said that we'd have very advanced AI by GPT-5 and singularity is just around the corner. Marketing stuff of these companies pushing language models made us all fools (including me). Now finances are catching up to all this bullshit.

If / then / switch / while

All of these are examples of what executives are calling AI there are many scams its hilarious.

Grifters gunna grift they face no clawbacks from lying to investors.

“AI Winter is coming”

-Ned Stark

Does that have anything to do with the IP power grab that is apparently under way? I've seen the propaganda and the mood seems to be that AI should be monopolized by the few super rich.

Artificial Intelligence at this stage is Artificial Ignorance. It's not ready to be unleashed onto anyone who blindly trusts anything they read.

If the last 40 years has taught us anything, it's that the time is always right to short ai companies

ChatGPT says:

Investing in AI, like any other sector, carries risks that could potentially lead to financial challenges or even bankruptcy for companies. Some factors include:

1. High Initial Costs: Developing AI technologies often requires significant upfront investments in research, development, and infrastructure. If these costs are not managed well or if the technology doesn't gain traction, it can strain a company's financial resources.

2. Market Uncertainty: The AI market is rapidly evolving, and success depends on staying ahead of technological advancements. If a company fails to adapt or faces competition with superior innovations, it may struggle to maintain market relevance.

3. Regulatory Challenges: The AI industry is subject to evolving regulations, and changes in legal frameworks can impact operations. Non-compliance or unexpected regulatory hurdles can lead to financial setbacks.

4. Cybersecurity Risks: As AI systems become more integrated into various sectors, the risk of cyber threats increases. A significant cybersecurity breach could result in financial losses, reputational damage, and legal consequences.

5. Limited Adoption: If the adoption of AI technologies is slower than anticipated, companies heavily invested in AI may struggle to generate expected returns on their investments, potentially leading to financial distress.

It's important to note that while AI presents significant opportunities, prudent management, market understanding, and strategic planning are crucial to mitigate risks associated with investing in this dynamic and evolving field.

lol rekt