r/stocks
I am so angry for not seeing what everyone else saw.
Author regrets missing huge AI hardware gains while holding software, and now fears missing the space stock boom due to FOMO.
- Mega caps are committing $1 trillion to AI buildout, making hardware the foundational beneficiary.
- The current hardware cycle could last for 2 decades or more, mirroring the previous software boom.
- FOMO has historically led to massive gains rather than losses in the current market environment.
- Software and cyber defense stocks are severely underperforming as capital rotates into hardware.
- Chasing hype into space stocks and other speculative sectors based on pure FOMO can lead to irrational investment decisions.
I have been invested for 7 months now and what do I have to show for it? A bunch of software stocks that are up all of about 12%. Meanwhile the very hardware / AI / datacentre infrastructure stocks I dismissed as being overhyped, overvalued, too large of a market cap to continue etc are up literally 100% - 300%, not from the bottom, but from the 7 months I decided not to invest in them.
All the chip stocks, all the AI stocks, all the datacentre infrastructure stocks, even the energy stocks to support the datacentres I missed.
Like seriously how fucking stupid am I? The mega caps are spending $1trillion on AI buildout with chips, ram, cooling, energy, networking and energy essentially being the foundation of all that spending... and there's me buying fucking software. OK sure some of my picks were cyber defence and one can argue that AI models like Mythos pose a real danger to cyber security and therefore cyber security spend should increase significantly, but this clearly isn't the case.
Now I'm thinking actually this hardware cycle may last 2 decades or more, just like how software lasted 2 decades, maybe now it's hardware's turn. I'm just angry and frustrated that I missed something so stupidly obvious.
Now I'm seeing space stocks going to the moon (literally), and I'm still in software. What if space is the next giga economy with mining of asteroids bringing in trillions of dollars of revenue, next day galactic shipping, a million satellites in orbit by 2050, interplanetary internet, space warfare, robots building stuff in space and rocket launches occurring on an hourly basis from earth as simple as taking a plane from LA to New York.
"Need to visit my friend on Mars, when's the next rocket leaving?"
"Leaves in 45 mins, direct to Mars, no stopover on the Moon".
"Thanks, how much is the ticket?"
"$850 first class, or $500 economy."
People often say that FOMO leads to losses, but from my experience over the years, FOMO leads to massive gains almost every single time. Missed Palantir at $50, missed Tesla at $45, Missed Nvidia at $40, missed MU at $240, missed Vertiv at $100, missed Arista Networks at $50 etc etc the list is almost endless.
I suck at this game.