2024-07-25 09:14:13 ET
Summary
- Alphabet's earnings call revealed a possible delay in Gen AI adoption, and a possible Gen AI capex overinvestment.
- Thus, the Alphabet earnings report potentially triggered the Gen AI bubble burst.
- The S&P 500 could drop by over 50% if the Gen AI bubble burst is followed by a recession, which is what happened during the 2000 dot-com bubble burst.
The Gen AI Bubble
The S&P 500 ( SP500 ) performance has been driven primarily by a few tech mega-caps under the Gen AI theme, ever since Microsoft ( MSFT ) invested in Open AI in late 2022 and unveiled ChatGPT....
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Alphabet Bursts The Gen AI Bubble