If someone who is as unpopular as Elon the cringelord Musk can convince the markets that Tesla is worth its current stock price, I doubt the AI bubble will burst.
This is also why nothing will lower housing prices significantly. The problem isn't inventory, or that we're not subsidizing builders enough, or whatever. It's that we've decided that propping up housing values is more important than housing being affordable. And you cannot have both, full stop.
It's already burst in South Korea when China showed they can make memory chips too. And it would have burst by now in the US if OpenAI and Anthropic were public.
It is interesting looking at a long term chart how obvious that it was due for correction. Having said that, it's easy to say that after the correction because 'the top' is impossible to predict.
But if investors hadn't been taking profits on the incline, then I have little sympathy for them skiing down the decline.
(This is a harsh opinion, but people getting into investing should be doing it actively, not passively, ie. do some research, make a plan. Also, for those who are invested passively, long term, via ETFs, then they're still up 55% as @Nition says, so they're all good)
Active investing was the source of the problem here. Retail investors were buying leveraged bets on Samsung and SK Hynix which has wiped out their investment now it's crashed.
Had they passively invested in indexes over a long time they would be up still.
Consider everything it takes in organization to be able to send rockets to space and bring them back. That kind of organization would be able to do anything. There is where the value is. The world is not static and people are not static.
Looking at SPCX it lost half of its valuation in a month and the trajectory is only heading downwards. Out of the three expedited IPO requests (OpenAI, SPCX, Anthropoid) to the S&P 500 only SPCX was approved. The other two did not fulfill expedited IPO requirements. To recap, the only AI company (xAI) going into the market lost half of its valuation in a month, and the other players are tooo dodgy to enter. When they will eventually, boy will you see the bubble pop
