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. And there are others:
...Heading into this week, fears were mounting about the financial health of neoclouds like CoreWeave and Nebius, which are facing rising borrowing costs and a dearth of lenders as they pursue aggressive AI buildouts. Anthropic gets much of its capacity from Amazon, Google and SpaceX, but it also relies on neoclouds for some compute as it races to expand as quickly as possible.
Now investors are growing increasingly worried about the whole AI trade.
“It’s a great technology, seems to do things that we never would have imagined, but how does that then translate into a viable business?” David Hsu, a professor at the University of Pennsylvania Wharton School, said in an interview....
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.
Ticker for the roundup essay.
Watch your six, friends!
1 comment:
And the wobbly functioning of my phone and my computer and the search function no longer work
Every time I have a conversation in the house, the technology tattle tails on me to somebody who wants to sell me shit
Why do we want to buy technology that wants to strip us of our money?
And doesn’t do what we wanted to do ?
My phone needs to be replaced to be replaced, but I’m not gonna do it
The phone seems to benefit others more than it does me
Why should I pay for it Replacement?
Same goes for the computer
Every time we turn around, they want to charge us for something on programs that we bought a long time ago
They think that crack on my rear is for them to swipe a credit card
Give me a product that’s reliable and I will buy it
Give me a product that’s not spying on me and I’ll consider buying it
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