Key insights
- The author expresses significant concern over current market irrationality, particularly the speculative frenzy in AI and semiconductor stocks, drawing parallels to historical market bubbles. They believe valuations are unsustainable and a crash is imminent, citing the rush of capital into a narrow sector and the potential cash-outs by major tech players as warning signs. This sentiment suggests a potential rotation out of highly valued tech and into more fundamentally sound assets, posing a bearish risk to the broader market if a correction occurs.
My current portfolio only consists of non semiconductor-related stocks, in exception of Alphabet, Meta, Amazon, and Oracle.
The current market conditions has diverted from what I learnt about investing. Valuations are absurd. A single person’s (Jensen) word can boost a stock price to sky-high valuation. There is no rationality in the market anymore. All the money in different markets are rushing into the semiconductor or AI stocks. Yes, I mean all! This definitely cannot sustain.
Many people may laugh at me. But I sincerely believe the semiconductor crash is not far away. Just sharing my speculation, SpaceX, Anthropic, OpenAI are all rushing to cash out in this dangerous market.