Investor Michael Burry is confident that the market has adjusted its attitude towards AI
Investor Michael Burry believes the market has already delivered its verdict on major tech companies' investments in artificial intelligence. Investors are now favoring companies with high profitability over those making significant capital expenditures. According to a Bloomberg chart shared by Burry, Wall Street has reduced investments in many of the tech firms investing most heavily in AI. Companies like Alphabet, Amazon, Microsoft, Meta, and Oracle have underperformed the broader market since early June. Alphabet, despite having the highest projected capital expenditures for the next 12 months, was the worst performer. Another chart shows that forward price-to-earnings ratios for Nvidia, Microsoft, Amazon, Alphabet, and Meta have declined from recent peaks as investors reevaluate AI investment prospects. Burry commented, "The market has voted, and the results are clear." This shift in sentiment has pressured the "Magnificent Seven" stocks, with a related ETF down 3.37% year-to-date. Notably, venture capitalist Chamath Palihapitiya defended Alphabet's AI spending, citing its history of high returns on invested capital. Alphabet's Class A shares closed at $319.74, gaining 0.65% on Friday and rising another 1.56% in pre-market trading on Monday.
cryptonews.ruВчора 11:44
