Part 10/13:
Sheeran draws direct parallels between current scientific investing and historical bubbles such as Enron or Nortel. The market's obsession with AI is driven by “babies”— investors and traders enamored with short-term gains, ignoring underlying fundamentals. Nvidia, the poster child of the AI hardware boom, is seen as a speculative weapon more than a sustainable business.
He highlights troubling signs: mounting accounts receivable that are not matched by revenue, overreliance on a handful of hyperscalers that dominate AI compute, and the inflated valuations of startups lacking genuine, profitable products. These patterns resemble a Ponzi scheme or a bursting bubble, where optimism outstrips reality.