Comment on 5 Signs the AI Bubble is About to Burst
Ilovethebomb@sh.itjust.works 5 weeks agoThe price isn’t based on what the company is worth, it’s based on what people think the company will be worth in the future. Clearly, a lot of people believe that truly autonomous vehicles are just around the corner, and AI is going to revolutionise everything.
They’re most likely wrong, but it will take a long time for the market to accept that.
it’s based on what people think the company will be worth in the future
Not a single person in their right mind thinks that Tesla will ever be worth its current $1.3T market cap. Stock price is based on whether the market movers (not you or I) think that the price will be higher or lower a few weeks/months from now, that’s it. The actual intrinsic worth of the company makes no difference.
As someone on r/Wallstreetbets once said, I can stay irrational longer than you can stay solvent.
There’s enough people who genuinely believe the company is worth that to keep the value high for a very long time.
There’s enough people who genuinely believe the company is worth that to keep the value high for a very long time.
I don’t think there are. I just think there are a lot of people who believe they’re going to be able to get in and out before the Tesla bubble pops.
“greater fool” theory. Just gotta get out and leave someone else holding the bag. Easy to see with crypto rugpulls.
That’s also a possibility.
You’re correct about how the stock price works, but I’d go even further to add that it’s also based on what a small percentage of very wealthy people/funds want it to be at the time. The markets are so insanely easy to manipulate by them.
As for the rest, it’s almost certain that you’re the one that’s wrong - autonomous vehicles are absolutely the future. They could essentially end road fatalities, as well as allow commute time to be included as work hours as people could work while being driven to work, passive income via auto-taxi etc.
AI/LLM/etc, there’s zero doubt here that it is going to - if it hasn’t already, which I’d argue it already has - revolutionise the world. It’s already completely changing many industries beyond belief, and its uses and “intelligence” is already growing exponentially. It’s just the cool thing to hate by anti-capitalists/lefties because of various reasons, and make no mistake - the anti-AI people, and the people who think it’s just a fad or that it’s overrated, will be looked at like the people who thought of cars in the same way.
What we have now is like the DOS of AI and self driving cars compared to the Windows XP/7/11 versions that are coming, but the detractors are acting like it’s the finished product and will never improve. It’s here to stay, and what we have now is only scratching the surface.
For those of us who have been around the block a few times, AI is going to just be invisible in a few years, replaced by the new marketing buzzword, probably “Quantum”.
Source: Seen it before when the word was “Cloud”. Oh, it’s all in the Cloud! Cloud, cloud, cloud.
Before that it was “Virtualization”. It’s going to make everything more efficient!
Man, I need to make an AI powered quantum cloud virtualization.
Quantum entangled communications that are impossible to evesdrop on exist now, cloud computing is the money machine that allows Amazon to keep expanding, virtualisation is used by effectively every company using computers at scale. (blockchain, I'll admit, was pretty much all hype and vapourware other than laundering drug money and allowing speculation)
Just because there is marketing hype around a term doesnt mean there isnt anything of value there.
For someone who has “been around the block a few times” you seem to not understand just how incredibly revolutionary “cloud” and “virtualisation” were, and how they did revolutionise the tech world……
And yet nobody is currently talking about them, having the marketing push replaced with AI.
In a few years, AI tech will be silent, behind the scenes, and if anyone mentions it at all it will be “hey, remember when everyone was talking about AI?” while we’re all bitching about the new marketing buzzword.
I’ve been working in tech for 30+ years and involved in tech for close to 50 now. I’ve seen this pattern over and over again.
Hector@lemmy.world 5 weeks ago
No rational person would think that Tesla would command the majority of that market of autonomous vehicles, robots, or whatever. Especially not after their Flagship truck turned out to suck in like 20 different ways.
Ilovethebomb@sh.itjust.works 5 weeks ago
As someone on r/Wallstreetbets once said, I can stay irrational longer than you can stay solvent.