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Stock impact report

Investor Lauren Taylor Wolfe says we are ‘absolutely' in an A.I. bubble now [CNBC]

Advanced Drainage Systems, Inc. (WMS) 
Last advanced drainage systems, inc. earnings: 2/6 06:40 am Check Earnings Report
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Company Research Source: CNBC
“We are absolutely in an AI bubble now. It is going to burst,” she said on CNBC's “ Squawk on the Street ” Tuesday to David Faber . “I don't know when, I don't know the order of magnitude. A lot of people are going to lose money.” Her remarks come as enthusiasm for AI continues to drive markets higher, with investors betting the technology will transform industries and lift corporate earnings. Taylor Wolfe said investors are underestimating the risks tied to the surge in AI-related spending by major technology companies. “There are trillions of dollars that are being earmarked to be spent relative to hundreds of billions of dollars of free cash flow generated by the Mag 7,” she said, referring to the group of large-cap tech stocks that dominate the S&P 500. “They're going to have to borrow to invest in all this CapEx, and we have yet to see the returns on investment.” Her remarks come at a time when analysis shows the S&P 500 has become pretty much an AI index. Taylor Wolfe b Show less Read more
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