NYU professor and tech commentator Scott Galloway warns that the current artificial intelligence (AI) market is a massive bubble, predicting that high-flying tech stocks like Nvidia Corp. (NASDAQ:NVDA) could plummet by as much as 70%.
The AI Valuation Bubble
Speaking on the Inside Economics podcast alongside Moody’s chief economist Mark Zandi, Galloway cast heavy doubt on the sky-high expectations surrounding AI-centric companies.
He noted that the sector now represents roughly 40% of the S&P 500. For these companies to justify their astronomical revenue multipliers, Galloway argued they either need to drive unprecedented job destruction to create corporate efficiencies or face a severe market correction.
Galloway strongly believes the latter is imminent, predicting that major tech players will soon see their valuations slashed.
“If Nvidia goes down 70%, everyone’s going to feel it,” he cautioned, likening the potential crash to historical tech market corrections, such as Amazon.com Inc.‘s (NASDAQ:AMZN) brutal 97% drop during the early 2000s dot-com bust.
‘Corporate Ozempic’
Galloway also dismissed …
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