The Potential Existential Threat To AI

Bret JensenInvesting Group LeaderFollow5ShareSavePlay(11min)Comments(2)SummaryThe AI Narrative that has driven the majority of equity gains over the past three years got dinged up a bit late this week.Disappointing results/guidance from Oracle and Broadcom sent the NASDAQ down 1.6% for the week despite another cut to the Fed Funds rate.There are growing concerns that a potential AI bubble has developed that is being sustained by massive future investment commitments that may not materialize.The other existential threat to the AI infrastructure buildout that is underpinning the markets and the economy doesn't get nearly the right amount of focus.That is the ability to bring electrical generation capacity online to allow these new massive AI data centers to operate. The article discusses this gap further below. J Studios/DigitalVision via Getty Images Some cracks emerged around the AI Narrative that has driven most of the gains in equities over the past three years, late this week. Oracle (ORCL) fell 11% in trading on Thursday after posting quarterly This article was written byBret Jensen54.88K FollowersFollowBret Jensen has over 13 years as a market analyst, helping investors find big winners in the biotech sector. Bret specializes in high beta sectors with potentially large investor returns.Bret leads the investing group The Biotech Forum, in which he and his team offer a model portfolio with their favorite 12-20 high upside biotech stocks, live chat to discuss trade ideas, and weekly research and option trades. The group also provides market commentary and a portfolio update every weekend. Learn More.Analyst’s Disclosure:I/we have a beneficial long position in the shares of DVN, KMI, NEXT, OXY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.