Edward Dowd
@DowdEdward
Founder Phinance Technologies and author of Cause Unknown: The Epidemic of Sudden Death in 2021 & 2022. For event bookings: info@bigideaspeakers.com
1.5K Following 405K Followers
AI Bubble has officially burst today IMHO.
Semiconductors are the pick and shovel suppliers to the AI buildout. The industry is down 32% from the parabolic peak in June.
Today it took out the July low with authority. The AI bubble has technically burst. There will be rallies and hope but the process has begun. Financial reflexivity that propelled it up is now in reverse. Credit markets were the canary.
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Covid shot pusher telling you to be very afraid. I’m sure he has no agenda behind this prognostication…oh wait he wants a global organization to regulate.
We call this forward buying ahead of utilization. This is a natural phenomenon of any capex boom. Same thing happened during the telecom equipment/fiber build out in the late 90’s. Physical constraints, project delays and financing ultimately caused a slowdown. Eventually that earmarked forward equipment inventory started to enter the secondary market and customers stopped ordering.
It’s called a cycle. The question as always is the timing.
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