The foolish AI stock freak-out

Financial market sentiment is overwhelmingly negative at present. The semiconductor sector just experienced its worst drawdown since the Great Recession, and the neocloud stocks, which just a few months ago were on everyone’s buy lists, have imploded on fears of an artificial intelligence bubble.

That’s just the start. Both Anthropic and OpenAI — with their warnings that AI could become an existential threat to humanity —have provided the far-left’s anti-growth movement with new talking points. To top it off, there is the drumbeat that investment in the AI revolution will stop dead because the companies investing trillions of dollars in AI will never earn sufficient economic returns to justify their investments.