Record High Stock Buybacks Could Hint At An AI Bubble APAC Investment News 510 Follower s Comments (54) Summary Big tech companies like Meta, Alphabet, and Microsoft are flush with cash, fueling record stock buybacks and massive AI investments. Surging AI spending may be driven by FOMO and a lack of other profitable opportunities, risking the formation of an AI investment bubble. Despite AI's long-term potential, current revenues remain modest, echoing patterns seen during the dot-com bubble era. While not panicking, I remain vigilant for signs of excess. Also, a bubble burst could offer investors a buying opportunity. Thesis: Companies may be struggling to figure out how to spend their money. Excess cash, especially among big tech companies, and the fear of missing out could fuel an AI bubble as companies make risky and potentially excessive bets on This article was written by 510 Follower s Markets rise and fall, booms come and go, and the world keeps ticking. Ultimately, I believe observing megatrends, as difficult as they can be to spot, let alone fully comprehend, can yield insights into the advance of human society, which in turn could pave the way for many useful investment insights. As society and technologies evolve, companies and other stakeholders will seize advantages. Figuring out which companies will take the best advantage of any given opportunities is not easy. I am especially interested in macrotrends, futurism, and increasingly, emerging technologies. However, as far as investing is concerned, it’s crucial to pay attention to the fundamentals, quality of leadership, product pipeline, and all the other details. In recent years, I have focused on marketing and business strategy, primarily for medium sized companies and startups. I have worked in international development, including overseas for a foreign Prime Minister’s office, as well as non-profit work in the United States. Among other tasks, I evaluated startups and emerging industries/technologies. I have also moonlighted as a technology and economic news journalist. Now I’m looking to tie everything together. While my personal interests will always keep megatrends and technological developments in mind, I do believe fundamentals and technicals are vital to uncovering opportunities. Analyst’s Disclosure:I/we have a beneficial long position in the shares of META, GOOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body. Comments (54) Recommended For You About SP500 Ticker SymbolLast Price% Chg 1D 5D 1M 6M 1Y 5Y 10Y 52 Week High 52 Week Low Open Prev. Close More on SP500 Related Stocks SymbolLast Price% Chg QQQ QQQ -- SPY SPY -- DIA DIA -- IVV IVV -- IWM IWM -- VOO VOO -- SP500 SP500 -- NDX NDX -- DJI DJI -- SPX SPX -- 1D 5D 1M 6M 1Y 5Y 10Y Trending Analysis Trending News

Source: Seeking Alpha