Key insights
- The author argues that AI tech stocks, particularly Salesforce (CRM), are a sell due to overlooked physical limitations like data center constraints. They point to the cancellation/delay of data center projects in the US and CRM's 30% drop since launching Agentforce as bearish signals, suggesting further declines despite positive sentiment from other sources.
Hear me out: News articles, rosey speeches by CEOS tout how it's only learning models, competition, and coding that AI SaaS have to deal with, but I think people are overlooking physical limitations.
AI agents require cloud computing which requires space and data centers, which over half have been canceled or delayed long term in the US alone.
So, yes all the competitive companies and learning models are an issue, but I think the physical limitations are a bigger red flag.
Correct me if im off here, but I think most of the AI agent tech stocks are a sell right now.
Seeing CRM drop 30% in 6 months (since launching Agentforce) is a tell-tale for me. Especially since EVERY outlet and tech people are pushing how much it will bounce back...yet it continues plunges more and more.
Do you think it will sink some more?