The AI Revolution May Survive. Will Tech Stocks?
Besides programming, I also invest in stocks. A string of big events has landed recently: the midterm elections, the Fed’s rate hike, and Anthropic’s IPO. Personally, I love technology and favor tech companies, which I also understand better. But not everyone welcomes technological progress. Technological progress is cool in itself; what worries people is the blow it deals to every industry along the way. Trump’s way of “Making America Great Again” seems to rest on leadership in business, but the Democrats clearly don’t see it that way.
The Democrats won a sweeping victory in the midterms. Add the Fed’s new framework (let the market regulate itself, no bailouts, no guidance), and this technological revolution is more chaotic than any before it. Anthropic’s current situation clearly can’t support the valuation it wants. Could it have a secret weapon in-house? (Though that would also step on a Democratic landmine.)
With so many factors piling up, tech stocks don’t look set for an easy ride. Together they could well trigger a panic sell-off, but will this be the AI bubble bursting? I don’t think it’s time yet. The crash that truly marks the bursting of the AI bubble will surely be far more brutal than this one.