alt Hacker NewsSave money now.
When the bubble bursts it will depress valuations across the board, including the valuations of the good companies that will survive to eventually own significant market share. Buy those at those depressed prices and wait a decade.
The trick will be learning to tell the difference between the Google's and the pet.com's of the AI era. The trick during the dotcom situation was to look for companies that had actual gross profit and were reinvesting it, rather than companies that only had theoretical profit based on nonsense like market share and eyeballs.
Take Amazon as an example. They were $107 a share in 1999. By late 2001, it had fallen to under $6. Now they are $250. It still took almost 10 years to recover.
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Worst part is that some of the companies that survived the dot com era are the new "...but on the internet" companies except now it's "...but with chat bot"
Is there anyone in the AI sector that is making profit and re-investing it? I guess that really only applies to Microsoft, Apple, Google, etc. that other lines of business to prop up their AI divisions, vs. companies like OpenAI and Anthrophic. I wonder where NVIDIA will land...