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| New Book Warns of a Coming Collapse in AI StocksMarket veteran David Ellis says the current popularity of AI stocks is becoming a bubble that will ultimately burst
By: David Ellis The Next Bubble: How to Profit from the Coming AI Boom – and Bust! by David Ellis, a veteran investment professional for over 40 years, says the AI boom still has some way to run and it is not too late for investors to make substantial profits by investing in technology stocks. "However, my experience of trading through multiple market manias indicates that the AI boom will ultimately turn into a classic speculative bubble that one day will end in a massive correction." Ellis notes the average P/E ratio for the Information Technology sector, which includes many AI-related companies, right now is 51.8, much higher than the broader market average of 21. Fortunately, the average P/E was close to 70 at the height of the Dotcom bubble in March 2000, suggesting the current AI boom still has some way to run before it peaks. Of major concern is that, once the bubble bursts, stock prices can crash. After peaking in March 2000, the NASDAQ fell by around 78% over the next 2.5 years. In The Next Bubble, Ellis explores:
Among the companies named in the book are NVIDIA, Alphabet, Amazon, Meta, Apple, Tesla, Broadcom and Palantir. Ellis combines deep analysis with an accessible, no‑nonsense style designed to empower investors about the opportunities - and the dangers - to come. About the Author: David Ellis has more than 40 years of experience in the financial markets. His career has spanned stockbroking, corporate consulting, portfolio management and investment research, where he built a reputation for turning complex financial concepts into clear, actionable insights. Availability: The Next Bubble is available now on Amazon: https://www.amazon.com/ End
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