Wall Street’s bulls and bears live in two different worlds when it comes to AI: Are we at the early stages of a technological revolution or another bubble destined to burst? And in the last month, the momentum has shifted towards the bears…
October saw significant drops in major tech sector names following the Nasdaq-100's recent selloff, led mostly by Intel which plunged 47% on for the month. Nvidia and Google also saw drops well above 12% and as of Monday’s close, the tech-heavy index officially entered correction territory, falling more than 10% from its October 6 high.
Combined AI spending by major technology companies is expected to exceed $730 billion this year. So the question remains whether this money is being thrown down a black hole.
Tonight at 7PM ET, ZeroHedge brings together two veteran investors on opposing sides of the AI trade: Gene Munster and George Noble, moderated by Jack Farley, host of Monetary Matters.
Making the bullish case is Gene Munster, managing partner and co-founder of Deepwater Asset Management and previously spent 21 years at Piper Sandler. He argues investors are underestimating how early we are in the AI revolution.
Despite the latest selloff, he remains optimistic that AI spending will exceed Wall Street's longer-term expectations. And regarding what appears to be a concentrated sale in chipmakers, Munster believes the industry's growth will extend well beyond what today's leaders like Nvidia and Intel can produce.
Taking the bearish side is George Noble, the veteran investor who began his career working alongside legendary Fidelity fund manager Peter Lynch before running the Fidelity Overseas Fund. Noble believes the AI boom has developed into a capital-intensive speculative bubble, with companies spending enormous sums on chips and data centers without demonstrating adequate returns on investment.
Noble projects hyperscaler earnings will go negative by 2030 and compares the current AI infrastructure buildout to the shale industry's capital spending boom.
So will we see a crash that makes Dot-Com and 2008 look like a picnic, as Enron short-seller Jim Chanos has called for? Or was October’s drop a buying opportunity?
Join Gene Munster, George Noble and Jack Farley tonight at 7PM ET to answer these questions. Here on the ZeroHedge homepage, X feed, and Youtube channel.