alt Hacker NewsRight. AI companies have P/E ratios rarely seen for very large companies. Except for TSLA, which has a P/E ratio of 383, unheard of at that scale. No other large-cap company is much over 40.
TSLA should have crashed by now, but the hype just keeps on coming. Eventually reality will set in, but the market can remain irrational for longer than you can remain solvent. Big AI may be like that.
Investors like a story that lets their imagination run wild. TSLA offers that. AI / NVIDIA has that 10-fold. It’s “man’s last invention” - you couldn’t come up with a better hook to raise capital.
Short of an emergency rate hike to 10%, nothing stops this bubble.