Technology & Telecommunications
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Is AI making Meta a winner?
Roger Montgomery
November 5, 2026
If you hold units in a broad global index fund, shares in a global index ETF, or have global exposure in your Australian super fund, chances are you own a piece of both Meta Platforms and Alphabet (Google). Indeed, these two tech giants have long been dominant positions in most global portfolios.
A structural shift is now taking place behind the scenes, and it directly affects their relative revenue trajectories and market valuations. continue…
by Roger Montgomery Posted in Market commentary, Market Valuation, Technology & Telecommunications.
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Apple adds to AI woes
Roger Montgomery
November 3, 2026
For nearly two years, it has been an article of faith that the artificial intelligence (AI) revolution would fund its own momentum, and any enterprise failing to allocate exorbitant amounts of capital risks irrelevance.
More recently, however, that narrative has frayed under the weight of escalating capital expenditure (capex), declining free cash flows, and growing investor fatigue, if not nervousness, about the circular financing, which has escalated again with chip makers Nvidia, AMD, and Broadcom recently acting as US$5 billion cornerstone investors in Meta Platforms’ US$25 billion stock sale. continue…
by Roger Montgomery Posted in Companies, Insightful Insights, Market commentary, Technology & Telecommunications.
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Recent bubbles
Roger Montgomery
October 30, 2026
The artificial intelligence (AI) boom, or bubble, has captured so much investor attention that many have forgotten how many bubbles we’ve seen in the last decade.
And whether it was sudden liquidity shifts, low interest rates, technological enthusiasm, or structural market changes, these factors consistently combined to feed speculation and inflate asset markets.
When cheap capital or social euphoria flows faster than underlying fundamental earnings, valuations detach from reality. Most importantly, regardless of what drives the enthusiasm, whether it’s decentralised digital assets or meme stocks, each cycle saw valuations peak, and markets eventually corrected. continue…
by Roger Montgomery Posted in Economics, Insightful Insights, Manufacturing, Market commentary, Technology & Telecommunications.
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AI’s creative destruction or benign reset?
Roger Montgomery
October 29, 2026
Ed Yardeni just published his latest research note titled “Is AI useless?”
Now, to be fair, questioning whether trillion-dollar hyperscalers, NVIDIA and Frontier Labs, are collectively making an AI-powered mistake is clearly motivated by a little attention-seeking, but AI leaders are facing real challenges. continue…
by Roger Montgomery Posted in Market commentary, Technology & Telecommunications.
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Musk’s crystal ball says AI bubble is over
Roger Montgomery
October 28, 2026
Elon Musk issued a warning over the weekend about the state of artificial intelligence (AI) financing.
According to the SpaceX and Tesla founder, the debt markets have seized up for pure-play AI data centre operators, and more than 200 neocloud companies face severe consolidation or total collapse. continue…
by Roger Montgomery Posted in Technology & Telecommunications.
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Is the AI bubble leaking?
Roger Montgomery
October 27, 2026
Rising pressure on artificial intelligence (AI) debt, growing scepticism around massive AI spending, and investors beginning to question whether the returns could justify the investments. continue…
by Roger Montgomery Posted in Technology & Telecommunications.
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Can plunging AI costs outrun the spending spree?
Roger Montgomery
October 26, 2026
Artificial intelligence (AI), inference is getting cheaper at a pace that is rewriting the usual rules of technological progress. continue…
by Roger Montgomery Posted in Market commentary, Technology & Telecommunications.
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The AI funding window is closing: slowing revenue, IPO fails, and a bankrupt OpenAI
Roger Montgomery
October 21, 2026
For two years, Silicon Valley and global equity markets agreed that artificial intelligence (AI) is an uncapped frontier where aggressive capital deployment and unchecked spending would automatically yield exponential returns. Or, perhaps, equity markets believed the spin coming out of Silicon Valley.
Whichever scenario is true, reported operating results over the past week have confirmed the shift in sentiment toward AI.
Slowing revenue, public market pullbacks, and fluid enterprise strategies suggest the market’s appetite for unconstrained AI spending is finally hitting a ceiling. Investors have well and truly moved past the honeymoon phase and are demanding proof of a sustainable economic model. continue…
by Roger Montgomery Posted in Economics, Editor's Pick, Insightful Insights, Manufacturing, Market commentary, Market Valuation, Technology & Telecommunications.
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AI, interrupted.
Roger Montgomery
October 20, 2026
For the last twenty years, Silicon Valley – technology’s epicentre – enjoyed a relatively frictionless relationship with the rest of society. We celebrated its invention and innovation, the high-paying jobs it created and the investment returns.
But after twenty years, the marriage appears to be dissolving.
In Robert Bryce’s 9½-minute documentary, The Data Centre Backlash, a grassroots anti-data-centre movement is shown rising worldwide, from Texas to Ireland.
The doco shows local communities waking up to the unquenchable demands that generative AI and hyper-scale cloud computing place on local water and electricity grids – and they’re pushing back successfully. continue…
by Roger Montgomery Posted in Market commentary, Technology & Telecommunications.
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A U.S. view of Firmus
Roger Montgomery
October 19, 2026
Everyone seems to have jumped on the carcass of the Firmus Initial Public Offering (IPO) to dissect what went wrong. Since it was a local company listing on the domestic market, it’s understandable Australian news outlets and financial commentators have shown so much interest.
But while local commentators and media outlets continue to report on what would have become Australia’s largest-ever float, U.S. commentators are also responding. The difference is some are reading the pulled IPO through a far more ominous lens, one that says the artificial intelligence (AI) bubble is ending. continue…
by Roger Montgomery Posted in Global markets, Market commentary, Market Valuation, Technology & Telecommunications.
