I think we are not even close to using the potential of current LLMs. Even if capabilities of LLMs would not improve, we will see better performance on the software and hardware side. It is no longer a question of "if", but of "when" there will be a Babelfish like device available. And this is only one obvious application, I am 100% sure that people are still finding useful new applications of AI every day.

However, there is a real risk that AI stocks will crash and pull the entire market down, just like it happened in 2000 with the dotcom bubble. But did we see an internet or dotcom winter after 2000? No, everybody kept using the Internet, Windows, Amazon, Ebay, Facebook and all the other "useless crap". Only the stock market froze over for a few years and previously overhyped companies had a hard time, but given the exaggeration before 2000 this was not really a surprise.

What will happen is that the hype train will stop or slow down, and people will no longer get thousands, millions, billions, or trillions in funding just because they slap "AI" to their otherwise worthless project. Whoever is currently working on such a project should enjoy the time while it lasts - and rest assured that it will not last forever.