Key insights
- The author expresses concern about a potential bubble in AI, memory, and chip stocks, drawing parallels to the 2021 SPAC/EV bubble. They note that money is flowing into these sectors while other companies with strong results are being ignored, suggesting a possible market correction or rotation out of these crowded trades.
AI stocks have gone parabolic in the past couple of months. It seems everything remotely is related (such as ai infrastructure, construction related, cooling systems) has been going straight up. Meanwhile other stocks that are posting great results are doing nothing (eg. MELI, SOFI).
Memory seems crowded now, everyone piling on smaller stocks that have been flat for ages, and now gone up 300% in the last couple of months because they're memory related. Reminds me of the shitco/spac/EV bubble of 2021.