"We're not in the business of making financial recommendations, but CNBC personality Jim Cramer says there's no bubble coming for the AI sector - which, given his track record, should probably make any AI investors just a bit nervous. Now that Cramer - whose calls have historically underperformed so much that he inspired an entire phenomenon of people betting against him, called the " Inverse Cramer " effect - has chimed in on the topic, netizens are worried about an imminent collapse."
"Cramer has made plenty of disastrous calls over decades. In February 2000, he proclaimed that internet-related companies "are the only ones worth owning right now" - right before the dot-com collapse. In 2012, he bet against stalwarts like HP, Netflix, both of which soared following his sell notice. Hes even been accused of playing a part in the 2008 financial crisis."
"The stakes are considerable, with investors warning that spending on AI has contributed more to the growth of the US economy so far this year than all of consumer spending combined, foreshadowing a rude awakening. The sheer amount of resources being poured into AI could even mean that a crash could take down the US economy with it, some have argued. As a result, Cramer has become the target of ridicule on social media."
A prominent financial commentator asserts there is no impending bubble in the AI sector, arguing current AI infrastructure spending differs from the dot-com era. The commentator has a documented record of high-profile miscalls, including bullish internet predictions in 2000 and mistaken sell recommendations in 2012, and has faced accusations related to the 2008 crisis. Other experts warn that massive AI investment has driven substantial US economic growth this year—potentially more than consumer spending—and caution that a collapse in AI spending could trigger widespread economic consequences and intense social-media backlash.
Read at Futurism
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