IS WALL STREET’S AI CRAZE ABOUT TO CRASH AND BURN?
Could Wall Street’s love affair with artificial intelligence (AI) be coming to an end? CNBC’s Jim Cramer seems to think so. In a recent segment, Cramer compared the hype surrounding AI to the GoPro fad of the past, suggesting that the days of companies cashing in on AI may be numbered.
Cramer pointed out that many companies have been trying to fit AI into their bullish narratives, but he believes that unless they can show a legitimate way to make money off AI, the hype will soon fizzle. He cautioned investors that some companies may be overhyping AI to raise their stock valuations, without actually providing tangible returns.
While Cramer acknowledges that AI will have a huge impact and be crucial for companies dealing with vast amounts of data, he questions the value of advertising AI directly to consumers. He argues that AI is meant to save businesses money, not serve individual consumers. According to him, many companies are embracing AI for show and may be running out of legitimate use cases.
It’s clear that AI has tremendous potential, but as Cramer suggests, unless companies can deliver a real return on investment, the whole idea of AI as a transformative force in consumer markets may fizzle out. And if that happens, the stocks of companies that pushed the AI story may fizzle with them.
So, what do you think? Is Wall Street’s AI craze reaching its peak? Do you believe that companies are overhyping AI to raise their stock valuations? Let us know your thoughts in the comments below.
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