tech industry trends – Live Laugh Love Do

Jamie Dimon drops surprising take on AI stocks

admin — Thu, 16 Oct 2025 20:44:51 +0000

[ad_1]

AI has transformed business, but in doing so, it has also rewritten the stock market’s leaderboard.

Since 2023, AI-driven megacaps have effectively become trillion-dollar machines, minting record-level gains while dominating the indexes. For a little color, Nvidia’s market cap alone has swelled from $1 trillion to over $4.3 trillion in a little more than two years, positioning it as the face of a market supercycle.

Moreover, this frenzy isn’t confined to public markets.

The Financial Times recently reported that 10 unprofitable AI start-ups added approximately $1 trillion in paper value over the past year. AI has, in essence, pumped multi-trillions into global stock market capitalization, reshaping both perception and pricing power.

Additionally, by October 2025, nearly 50% of the S&P 500’s $57 trillion market value is linked to “AI-exposed” sectors, including cloud and semiconductors, data-center energy, and software monetization.

That’s exactly where Jamie Dimon comes in. The JPMorgan chief just cut through the hype, questioning whether AI stock investors still know what’s real amid what has been a gold rush.

Jamie Dimon isn’t calling AI stocks a bubble yet.

Bloomberg/Getty Images

Jamie Dimon says the AI boom isn’t a bubble, but investors should get picky

JPMorgan Chase CEO Jamie Dimon just dropped a sharp take on the AI frenzy, calling it “real but risky.”

Speaking at Fortune’s Most Powerful Women Summit in Washington, D.C., Dimon said that while AI will “probably pay off,” every project will survive. “You’ve got to go one by one,” he told the audience.

“Some of these things may be in the bubble, but in total, it’ll pay off.”

More Experts

Dimon’s view is blunt and has major implications for AI stock investors.

The JP Morgan head likens the AI revolution to a massive-scale industrial build-out, more “roads, cement, and steel” than a speculative stock play.

The problem, though, is that not every “AI” company gets the power, chips, or capital needed to finish what it started. That means that a significant number of splashy data-center projects may never even reach completion.

For investors, Dimon’s takeaway is mostly straightforward, in that it’s wise to avoid chasing every AI ticker. Look for companies with a strong liquidity profile along with clear visibility on power supply, disciplined spending, and real returns.

His message is remarkably pertinent, especially given the narrow and expensive nature of the AI trade over the past few years. Dimon’s advice relates to shifting from story stocks to operators that can actually execute.

Wall Street is divided on whether AI is a bubble or a boom

The debate over the sustainability of the AI trade is heating up, and even the bulls admit the air’s getting a lot thinner.

Goldman Sachs believes that this isn’t a 1999 redux, arguing that real profits back the AI surge of today, not just promises. Robust balance sheets and measurable productivity gains, they say, effectively shield it from “bubble” territory.

Moreover, Morgan Stanley expects AI software sales to reach a whopping $1.1 trillion by 2028, while UBS forecasts AI capital expenditures to reach $375 billion next year, increasing to $500 billion by 2026.

Google parent Alphabet and Microsoft are boosting their budgets, with Google alone expected to spend roughly $85 billion in 2025, as they both look to gain more ground on their competitors.

Additionally, Nvidia’s Jensen Huang refers to it as a shift from traditional data centers to “AI factories,” hailing it as more of an industrial transformation than a speculative fad.

However, the skeptics are sounding the alarm.

Barclays notes that AI’s boost to GDP is still relatively modest at just under 1% so far, warning that bottlenecks in power and logistics can drag returns.

Veteran investor Rob Arnott compares Nvidia’s surge to 1999’s mania, while billionaire Jeremy Grantham sees “super-bubble” dynamics taking shape across U.S. stocks.

Even the insiders are hedging. OpenAI’s Sam Altman feels investors are “overexcited,” and Intel’s Pat Gelsinger calls it “a bubble that won’t pop yet.”

Quick takeaways:

Bulls feel that profits and productivity are keeping AI from bubble status.
Skeptics are warning that energy limits and valuations could bite.
Even insiders see hype outrunning execution.

[ad_2]

Meta’s Mark Zuckerberg says it’s ‘definitely a possibility’ that we’re in an AI bubble

admin — Fri, 19 Sep 2025 19:46:40 +0000

[ad_1]

Deutsche Bank called it “the summer AI turned ugly.” For weeks, with every new bit of evidence that corporations were failing at AI adoption, fears of an AI bubble have intensified, fueled by the realization of just how topheavy the S&P 500 has grown, along with warnings from top industry leaders. An August study from MIT found that 95% of AI pilot programs fail to deliver a return on investment, despite over $40 billion being poured into the space. Just prior to MIT’s report, OpenAI CEO Sam Altman rang AI bubble alarm bells, expressing concern over the overvaluation of some AI startups and the intensity of investor enthusiasm. These trends have even caught the attention of Fed Chair Jerome Powell, who noted that the U.S. was witnessing “unusually large amounts of economic activity” in building out AI capabilities.

Mark Zuckerberg has some similar thoughts.

The Meta CEO acknowledged that the rapid development of and surging investments in AI stands to form a bubble, potentially outpacing practical productivity and returns and risking a market crash. But Zuckerberg insists that the risk of over-investment is preferable to the alternative: being late to what he sees as an era-defining technological transformation.

“There are compelling arguments for why AI could be an outlier,” Zuckerberg hedged in an appearance on the Access podcast. “And if the models keep on growing in capability year-over-year and demand keeps growing, then maybe there is no collapse.”

Then Zuckerberg joined the Altman camp, saying that all capital expenditure bubbles like the buildout of AI infrastructure, seen largely in the form of data centers, tend to end in similar ways. “But I do think there’s definitely a possibility, at least empirically, based on past large infrastructure buildouts and how they led to bubbles, that something like that would happen here,” Zuckerberg said.

Bubble echoes

Zuckerberg pointed to past bubbles, namely railroads and the dot-com bubble, as key examples of infrastructure buildouts leading to a stock-market collapse. In these instances, he claimed that bubbles occurred due to businesses taking on too much debt, macroeconomic factors, or product demand waning, leading to companies going under and leaving behind valuable assets.

The Meta CEO’s comments echoed Altman’s, who has similarly cautioned that the AI boom is showing many signs of a bubble.

“When bubbles happen, smart people get overexcited about a kernel of truth,” Altman told The Verge, adding that AI is that kernel: transformative and real, but often surrounded by irrational exuberance. Altman has also warned that “the frenzy of cash chasing anything labeled ‘AI’” can lead to inflated valuations and risk for many.

The consequences of these bubbles are costly. During the dot-com bubble, investors poured money into tech startups with unrealistic expectations, driven by hype and a frenzy for new internet-based companies. When the results fell short, the stocks involved in the dot-com bubble lost more than $5 trillion in total market cap.

An AI bubble stands to have similarly significant economic impacts. In 2025 alone, the largest U.S. tech companies, including Meta, have spent more than $155 billion on AI development. And, according to Statista, the current AI market value is approximately $244.2 billion.

But, for Zuckerberg, losing out on AI’s potential is a far greater risk than losing money in an AI bubble. The company recently committed at least $600 billion to U.S. data centers and infrastructure through 2028 to support its AI ambitions. According to Meta’s chief financial officer, this money will go towards all of the tech giant’s US data center buildouts and domestic business operations, including new hires. Meta also launched its superintelligence lab, recruiting talent aggressively with multi-million-dollar job offers, to develop AI that outperforms human intelligence.

“If we end up misspending a couple hundred billion dollars, that’s going to be very unfortunate obviously. But I would say the risk is higher on the other side,” Zuckerberg said. “If you build too slowly, and superintelligence is possible in three years but you built it out were assuming it would be there in five years, then you’re out of position on what I think is going to be the most important technology that enables the most new products and innovation and value creation in history.”

While he sees the consequences of not being aggressive enough in AI investing outweighing overinvesting, Zuckerberg acknowledged that Meta’s survival isn’t dependent upon AI’s success.

For companies like OpenAI and Anthropic, he said “there’s obviously this open question of to what extent are they going to keep on raising money, and that’s dependent both to some degree on their performance and how AI does, but also all of these macroeconomic factors that are out of their control.”

Fortune Global Forum returns Oct. 26–27, 2025 in Riyadh. CEOs and global leaders will gather for a dynamic, invitation-only event shaping the future of business. Apply for an invitation.

[ad_2]