“Behind The Scenes”: Amazon & Google Quietly Lower Expectations For Generative AI As Hype Cycle Fades | ZeroHedge

Over 10,300 X users participated in a survey we conducted almost a month ago, asking: "Have you used Grok, ChatGPT, Gemini or any other AI chatbot in the past week?"

The final result: 61.8% responded "No," while 38.2% said "Yes."

With Nvidia shares up 80% year-to-date and fueling an epic artificial intelligence boom, the one question that lingers in the minds of well-seasoned traders: When does the music stop? 

The music might not be stopping yet, but the tempo is undoubtedly beginning to slow. Consider this note from the tech blog The Information: 

If The Information's reporting is correct, then it's more supportive evidence the AI hype bubble is fading. 

Last month, Deutsche Bank's head of thematic research, Jim Reid, pointed out in a note to clients that artificial topics mentioned on Russell 3000 earnings transcripts peaked in the third quarter. 

The latest earnings call data from Bloomberg shows that the number of times "generative AI" has been mentioned continues to decline quarterly. 

Even the number of headlines in corporate media mentioning "chatbot" peaked over a year ago.

However, the number of mentions "AI bubble" in corporate press surges as Nvidia makes new highs. 

And recently, we published a note from Benjamin Picton, Senior Macro Strategist at Rabobank, titled "Stock Prices Have Reached What Looks Like A Permanently AI Plateau," which also cited the Cisco Dot Com analog overlaid with current Nvidia price action.

And what could pop the AI bubble? 

BofA's Michael Hartnett recently told clients about rates, penetration, and regulation.

Leave a Reply