[MrMatt]

So beware any company that has participated in the current stock balloon based primarily on AI as the balloon will eventually pop!

I think AI is like modern telecommunications, it will have a massive impact.

However like the Tech Boom, the AI boom is similar.
There are a lot of bad ideas and overhyped solutions that simply aren't worth it.

The current craze is on LLMs, which are great and powerful tools, with significant inherent limitations, and I don't think those are well understood by the general public.


There are absolutely great AI based tools and solutions, but not at the current valuations.

 

[MrMatt]

It is mainly used to avoid work of some kind -- like where post #3 uses AI to amplify "I agree" into 240 fairly empty words of claptrap, mainly in an effort to be ironic about the "true" prospects of AI.

I think AI is an excellent and useful tool, like a screwdriver.
You try to use it for other tasks, it might work well, it might not.

 

[MrMatt]

One difference today is many of the big players actually have solid earnings and P/E multiples are well under 100. Much of the dotcom crap had minimal earnings and 3 digit multiples.

For example MSFT, which has benefitted from the AI boost, is still in the 30's, a bit high, but they've had earnings and revenue growth in the teens for quite a while, and a not bad dividend (for a tech company).

I also think their product suite actually provides very good value. Tough praise from a long time Linux anti-MS guy.