From a matter of fact standpoint - this is where we are:
- Anthropic IPO price being marked down on public markets, OpenAI slashing the amount they're raising
- Companies have had multiple quarters to show AI growth, which just isn't coming out at the same rate that the market expects them to be
- We are seeing the wave of adoption come from bad actors with many hacks / breaches - and as humans, negativity bias is real and more and more people are seeing AI for how it's being used for evil and not good - which usually takes far longer to produce
- Individual AI stocks down anywhere from 10 - 30% from ATHs, with markedly more volatility from before ; more volatility after a large run up usually comes from the end of the cycle
- Most Americans are reporting more and more "economic uncertainty" - and they are less optimistic about the economic reality of their future
- Rising costs of living and inflation and gas costs are genuinely being felt by people on the ground
- After months of uncertainty, this is finally being baked into prices somewhat; indexes across the world are already down anywhere from 10 - 30% ;
Two things can be true - AI can be early in terms of adoption and how it's being used, but prices in the markets can also be far overshot in reality.
It is also clear that price IS moving downwards and there is just a huge wave of anger amongst semis participants about why their stocks should be at the highs
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