Per Business Insider
David Rosenberg draws similarities to the dot-com era and the AI-fueled stock market rally, saying it was 'overextended'
6/15/2023
David Rosenberg, a veteran economist and the president and founder of Rosenberg Research, commented on the current market conditions, sharing similarities with the dot-com era and the artificial intelligence frenzy.
The economist mainly noted that the stock market rally was, in part, fueled by AI and that the surge was "overextended." Rosenberg gave a statement to CNBC regarding the situation, saying that there was a "price bubble."
Rosenberg: "I think that we have a price bubble... If you look at the six-month chart of the Nasdaq 100, you have to be blind not to see that, 'Okay, this is actually looks very weird, and it's way overextended.'"
Recently, NVIDIA mentioned AI 43 times during its earnings call which resulted in it closing 24% higher on Thursday. The overall Nasdaq Composite was up by 1.7% during the same period.
Rosenberg commented on the situation sharing how this was similar to the dot-com bubble. The veteran economist shared how the magic word back then was ".com."
Rosenberg: "This type of corporate behaviour is not too different from what took place in the dotcom bubble, with company after company satisfying investors' appetite for news on how it plans to incorporate the internet into its business — or boosting stocks just because they added '.com' to the name,"
OpenAI's Sam Altman reportedly talked about how the whole world wants AI and how AI could become bigger and bigger. The CEO noted that they would make their models more efficient and that they're going to make even more chips.
Sam Altman noted that he didn't want the company to go public and that he wanted to retain full control of the business. The OpenAI CEO detailed how there could be certain decisions they might need to make that might not sit well with public market investors.
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Other News:
- OpenAI's Sam Altman talks about how the whole world wants AI
- OpenAI founder says he doesn't want the company to go public to retain full control
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