Key insights
- The author argues that the current AI and robotics boom is a 'super bubble' with a longer tail than the dot-com bubble. Unlike the internet's initial reception, AI and robotics have captured widespread public imagination, driving investment. The author is particularly bullish on semiconductor stocks as the foundational layer for these technologies.
I started trading in early 2000 and lost $10k in my 20's, which really sucked, but it gave me some insight into what bubbles look like, and how the populace acts during one. First of all, back then, the internet was seen as dorky and only for losers by a huge number of people. Yes, the potential factor was there, but there were a ton of people that would rather be caught dead than be seen using the internet. This is what the nerds in their bubbles didn't see. I straddled the nerd world and the cool world in those days. One time in 2000 my friend got made fun of by the group because he said he found the bar that he chose in Manhattan "oN tHe iNtErNeT" and everyone laughed. Now with AI, everyone's mind is blown. It's like magic. And with robots coming out, the average Dick and Jane's are seeing it, and this is the next leg of the investors. There were late-bloomers to the dot.com bubble, but this one has a much, much longer tail. It's inescapable you see AI everywhere now. The robots will be the next big leg of this super bubble. Everyone has been shocked by ai and current robot tech, unlike the heralding of the internet, where it was like "eye-roll" by a huge portion of the population that the nerds and Silicon Valley elites never saw. And the source is the chips. I think chips go hard from here, even though they are up. This pisses on the internet bubble.