alt Hacker NewsAs uncomfortable as this may be for the tech industry, I have been hoping for AI related stock prices to come back to reality. A market correction is a healthy thing so long as it doesn't turn into a collapse. IMO, some AI companies have ludicrous valuations considering their astronomical debt. A reality check may be healthy long term.
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Good hardware companies are now trading at far under ten P/E, hardly ludicrous valuations. Sure there are some poor companies out there, but Nvidia and Micron are not among them. SMCI just beat substantially. Buying opportunity when things settle down.
Debt to Equity ratio thresholds are a common metric for lenders to call in loans.
a reality check for a crazy person can result in a mental breakdown
Yeah I'm not sure how Anthropic is going to IPO at this rate...
I hope they go low enough I'm willing to buy some shares of ANT
IMO OpenAI jumped the gun and rushed an immature product to be there first, no matter the costs. The other players saw it as a threat, and started running with the same carelessness. It has been spiraling since then, and while the product keeps improving, their business model hasn't demonstrated sustainability.
Their CEOs know it, and they must have their end game. I'd hate to think they'll just keep running until a hard crash. Hopefully small corrections will slow this down in a more controlled manner.