I see the AI topic from two different perspectives.
I don't think the technology itself is just a short-lived hype. To me, it's comparable to the internet in the 1990s. Back then, there was a bubble, many companies disappeared, but the internet still changed the world permanently. I can imagine AI following a similar path.
The valuation of AI-related companies is a different story. Here, I'm much more cautious. Huge amounts of money are currently being invested in data centers, chips, and infrastructure. Not every investment will pay off, so I think there's a real possibility that parts of the market are becoming overheated.
That said, I still find the idea interesting. If the AI boom eventually loses momentum, investors will likely start looking for other opportunities. Whether that capital will actually flow into gold and Bitcoin is impossible to know. However, both share one important characteristic: they are scarce assets and are widely viewed as long-term stores of value.
That's why I continue to increase my positions in both gold and Bitcoin on a regular basis. Not because I'm skeptical about AI, but because I see them as a sensible complement to my portfolio.
Interestingly, I have hardly invested in AI itself so far. My only real investment is a monthly subscription that I use every day. Maybe it's time to rethink that.
I also see those parallels to the dot com bubble though in my view we are still further away from the crazyness of that time back then.
I agree. I don't think we've reached the same level of irrational exuberance that we saw during the dot-com era.
One difference is that AI is already creating real value today. Millions of people use AI tools every day, and many companies are integrating them into their workflows. During the dot-com boom, a lot of companies had little more than a website and a business plan.
That said, I do think expectations are becoming very high. The technology will likely continue to transform many industries, but not every company investing billions today will end up being a long-term winner. That's where I see the greatest risk.
The last point is very true. Nobody remembers Lycos or searches the Net with Yahoo anymore although they were big names back then.
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