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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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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With interest rates, inflation and broader economic uncertainty continuing to influence Australia’s property market, what lies ahead for property prices and investors?

In this episode of The Propertybuyer Podcast I joined host Rich Harvey to discuss the outlook for Australia’s property market and the factors that could shape its future direction. The conversation explores the changing economic environment and what investors should consider when navigating market uncertainty, with a focus on the forces influencing property markets and long-term investment decisions.

by Roger Montgomery Posted in Podcast Channel, Property.

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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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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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In a recent Substack post, NYU Stern School of Business Professor Aswath Damodaran – widely recognised as the ‘Dean of Valuation’ – delved into the current state of the equity market and the wave of artificial intelligence (AI) capital expenditures (capex). Continue…

by Roger Montgomery Posted in Market commentary.

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BCA Research has published its latest equity strategy report authored by Noah Weisberger, Yifei Liu, and Allen Li, titled Cerberus Paribus: The Three-Headed Threat To Equity Valuations (Bonds, Earnings, and IPOs).

BCA’s principal stance on United States equities remains “constructive”, however the report warns about the shifting mechanics driving the market. Specifically, the path toward their S&P 500 8,100 year-end target is transitioning from a regime fuelled by price-to-earnings (P/E) multiple expansion to one increasingly reliant on fundamental earnings growth. Continue…

by Roger Montgomery Posted in Economics, Market commentary.

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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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• POSTED IN Economics, Editor's Pick, Insightful Insights, Manufacturing, Market commentary, Market Valuation, Technology & Telecommunications.