Yes, the herd mentality exists in American industry. Most recently, The Herd decided that AI was the thing to do.
Ooops!
Shares of Intel plunged roughly 25 percent in premarket trading Friday after the American semiconductor giant issued a sharply disappointing sales and earnings forecast...
...The unexpectedly bleak outlook sent Intel shares tumbling more than 25 percent before Friday’s opening bell, threatening to wipe out more than $120 billion in market value. ...
The reason for this collapse?
...The selloff was particularly dramatic because Intel shares had more than doubled this year as investors bet on a revival of the company’s fortunes amid the artificial intelligence boom....
Oh. AI!
To be fair, Intel's business model included personal computers. Those sales have been down; some question whether the PC market will ever revive.
The AI Herd-damage extended to Google.
...[Google's] Q3 earnings call highlighted strong search query growth and the significant role AI Mode played in driving it. The company described its year-over-year query growth as its strongest in five years, including more searches with commercial intent, tying it to double-digit growth in Search advertising revenue.
Yet the earnings call made it clear that there’s a gap between the query growth and Search advertising revenue: AI Mode is driving additional queries, but those interactions generate less advertising revenue...
Eating its own lunch, so to speak.
Even Meta is taking a hit on the "AI" thing.
Being in The Herd is good for a time. The trick is to get OUT of the Herd before things go south.
BTW, some are noticing the financing structure behind those Data Centers now chewing up thousands of acres of land nationally, and that financing structure is beginning to shake, rattle, and roll. Not in a good way.
Watch your six, friends!
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