r/stocks
Why the AI bubble doesn’t matter (if you zoom out)
Despite potential AI bubbles, the broader tech boom in AI, space, and energy makes holding tech stocks for 10 years highly profitable.
- Technological development will eventually catch up to investor expectations, much faster than the post-dotcom internet build-out.
- The current tech boom extends far beyond AI, including space exploration, robotics, quantum computing, and advanced energy.
- Long-term holding of tech stocks over the next decade is the best strategy despite short-term volatility.
- There will be significant market corrections over the next decade, potentially driven by AI development lagging behind expectations.
- The tech boom will inevitably experience bubbles, pops, successes, and disappointments.
There will be many significant corrections over the next 10 years. Some may be related to AI development lagging behind investor expectations.
However, let’s zoom out on the tech sector and look at the big picture.
If AI fails to deliver what investors are expecting, development will eventually catch up with their expectations. And it will do so quickly, relative to the time it took to develop an internet that doesn’t suck so that companies like Amazon could implement effective platforms for internet commerce after the dotcom bubble burst.
But this tech boom we are in is about way more than just AI, though AI will be incorporated into all of it. Over the next 10 years, in addition to AI, countries around the world will also be involved in a race to get ahead of the competition with space exploration and satellite development, moon colonization (and mining), robotics, quantum computing, automated transportation, energy (including deployable small nuclear reactors) defense, and more.
This tech boom is not just about AI. There will be ups and downs, bubbles and pops, there will be successes and disappointments, tears and laughter. And fortunes will be made.
And the best plan is to leave your money in tech, and don’t touch it. For 10 years.
I zoomed too far out and now I'm have an existential crisis.
you are too short sighted. AI enables an entirely new generation of software to be created, and the models are just getting powerful enough to do so. Everything will be AI and someone has to compute it
I'm not disputing that. But the recent valuations are 100% hype. They need to go back to reality.
You mean hype backed by actual earnings.
No matter what Google is going to do whatever it takes to keep its power. I like this advice
It’s all proved in.
That’s only is your invested once and never invested again and did not continue to buy at regular intervals (weekly/monthly etc.). It also does not count dividend payments that you may have received.
If AI fails to deliver what investors are expecting, development will eventually catch up with their expectations.
Due to the level of investment, development wont catch up fast enough and will instead be forced on consumers
thats the problem, companies with millions of dependent businesses removing what consumers currently use and swapping it out for AI to recoup lost investment.
If you zoom out even further, matter is nothing
Double vision can be difficult but there are treatments available
For example, less intake of alcohol is often a quick fix.
Okey, but what needs to be robotised? (I genuinely ask).
Most of low level labor has been robotised in the 3rd revolution (with ABB, Kuka, Siemens, etc). And these machines don't really requre that much RAM.
So what other industries or sectors can be robotised that would warrant more RAM supply?
Like I said below. It's not like AI will disappear. But we need to separate usefulness from hype.
I stopped reading at irregardless
Tqqq isn’t a long term or even mid term hold…
Wow what a bloodbath
Dust in the wind
It’s not ignorance. I think we are all aware, but the thesis hasn’t changed yet. The key players are still dominating and I will continue to invest until the winds have changed. I’m married to my thesis, not the companies.
Yeah that’s why you don’t buy MU at $1,000. It doesn’t matter what the investment is, you don’t buy at the current top. These red days over this past week has been a gift to those with a bullish thesis on AI and/or those looking for an attractive entry point to the sector (launch as MU at $880 instead of $1,000) while the rest of the market is either irrationally bearish or rotating capital on distractions (SPCX). There is a lot of unguided, shallow retail money out there. I’m so bullish on the AI build out and it is one of the most easily foreseeable investment opportunities with the magnitude to generate generational wealth for those with the conviction to put their money where their mouth is. This is more than a glorified search engine. It’s a matter of national defense and the future engine of all things data, pattern recognition, and “bitch” work / admin work.
I could be entirely wrong - I don’t think so - but I’m confident enough to own whatever happens and every penny I have outside of my retirement and 6-month emergency fund is in the AI build out.
You are in a financial subreddit, you’re going to have an outsized population of finance professionals. Don’t know what to tell you there. Happy to hop in discord if you ever want to break down further. I enjoy talking all things investing and finance
I don’t just mean on this subreddit it happens everywhere. I don’t have discord or any interest in any other social media platforms but thanks for the offer
All good - don’t really know what else to say but that’s my background and my opinion, which is really only worth something to me.
Happy to talk more about our market thesis… there’s no way to defend my background or expertise on here because no one knows each other or even cares, which is fine. I like talking ideas though.
Hmm...financial engineering...
Circular financing, synthetic leasing...
Yes, all technically legal until you have another Enron and things become not legal
Admitting your role in this isn't the flex you think it is 🤦
I admitted my role in being apart of an illegal scheme? Where? You’d be a terrible attorney… lol.
And you're a fantastic troll
Super interesting. Can i ask how you learned to do all that? Are there videos/youtube clips you read to learn how to do that. Or was it really just toying around with the system
Do you really want to live to see Trump take his 8th term as president. "Im going to beat the economy. This time its personal"
Literally thank you. Buying AI is a hedge against jobs existing. People will either be asset owners or members of the underclass. Companies are not going back to hiring.
Okay I feel 90% of this post is just you saying “x will happen” and I’m like hmmm why
You can just say sexbot, no need to hide on reddit.