"We've been here before. If you're the first one to predict a bubble, you probably were wrong because it went up a whole lot before it went down. And so getting the timing of these is just much, much harder than knowing that eventually there probably will be one. Is the A.I. economy a bubble? Are we just in the early moments of a technological revolution? Nvidia's stock price exploded from $14 in 2022 to over $180 today, turning early believers into millionaires."
"An artificial intelligence boom pushes investors to pour money into the stock market. Or are we overextended and headed for a crash? And if we are watching a bubble inflate right now, what should the government or for that matter, the individual investor do about it? My guest today has a lot of bubble experience. He was an economic advisor in the Clinton White House when the dot-com boom imploded."
Rapid A.I. enthusiasm has driven outsized stock gains and sparked debate over whether the A.I. economy represents a speculative bubble or the start of a technological revolution. Nvidia's shares surged from $14 in 2022 to over $180, producing substantial investor returns and attracting large capital inflows into equities. Concerns include possible overextension and the risk of a market crash, and questions arise about appropriate actions for government and individual investors. Historical episodes such as the dot-com and housing bubbles shape assessment. A recent ChatGPT rollout produced mixed reactions that led some investors to reassess expectations.
Read at www.nytimes.com
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