2024-07-02 16:44:20 ET
Summary
- The survey finds that "the financial benefits of implemented Gen AI projects have been dismal", 42% of companies have yet to see a "significant benefit from their generative AI initiatives".
- It seems like the Gen AI initiatives are very costly to implement, and on top of that, might not even work correctly (hallucinations concerns).
- The Semiconductors ETF SMH experienced a melt-up due to stock splits for Nvidia and Broadcom, but this bubble is likely in the process of bursting.
The Melt-up
The negative fundamentals and deteriorating technicals were already evident for the Semiconductor ETF ( SMH ) in March, when I recommended a sell . The price significantly corrected over the next month....
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SMH: The Gen AI Bubble Is Bursting, Semiconductors Already Past Their Peak