Some AI Lessons In A Booming Economy

Today, Elias and Ed examine lessons that emerged from last week’s financial market turbulence. While stock investors soured on AI-related stocks, pulling the S&P 500 down despite good performance from most sectors, the week yielded several insights that are encouraging for the AI trade. … Less encouragingly, last week showed how little tolerance investors now have for under-delivering AI companies. Analysts with unattainably high estimates are to blame for that. But at least such investor skepticism inhibits bubble formation. … Also: The US economy is firing on all cylinders, as the release of Q3 real GDP growth shows, and underlying demand was even stronger than the headline number suggests.