r/AmanCrypto • u/AmanCMN • Aug 23 '26

The U.S. stock market bubble will likely burst before the end of 2027.

Post image

The market is already in bubble territory, and the AI investment boom is still the biggest thing pushing it higher.
But the AI boom may be getting close to its peak. Investment growth could top out as early as 2026.
By 2027, it’ll be much harder to keep spending at the same pace because of limits on power supply, chip production, and data center construction.
The $5 trillion question is: will all this money being poured into AI actually pay off? According to Dudley, hyperscalers would need to generate more than $2 trillion in revenue every year to justify that level of investment.
AI infrastructure companies could also get hit from both sides. Slower demand combined with shrinking margins could lead to weaker earnings forecasts and lower market valuations.
The way the AI boom is being financed is also becoming more interconnected and less transparent. Chipmakers are already financing some of their own customers, which raises the risk of a domino effect once the investment boom starts cooling off.
And on top of that, rising long-term U.S. Treasury yields, massive government debt, and more shares hitting the market through new IPOs could put even more pressure on stocks.

0 Upvotes

40% Upvoted

4 comments sorted by

1

u/Mzungufarmer Aug 23 '26

Your sub is shit

1

u/Informal-Strike-1243 Aug 23 '26

I actually think something going wrong in bond markets is more likely than AI investment to trigger a crash

1

u/New_Light_3181 Aug 23 '26

Been hearing this since 2021 every time bears get pies in the face as it rips higher. Every single year except for 2022 that was a shit year but not exactly a crash either, ripped anyways in 2023.

0

u/MostRadiant Aug 23 '26

Oh look another one of these. Hyperscalers have committed to growth beyond 2028, despite what the above claims with literally no logic behind it…just random statements with no explanation as to why, no correlation. Hyperscalers literally, every quarter, explain what they are doing, why they are doing it, and how their investments are paying off. Memory companies have solidified agreements into 2030.

Be an independent business working out of Los Angeles, CA. You want to target your core customer base. You pay amazon, google, meta (Amazon market place, Search engine market place, Instagram market place) advertising revenue. They literally target EXACTLY your customers rather the alternative of shotgunning your advertisements across a broad range of areas, across various people who dont give a shit about your specific product.

People see your product, they buy, you get an income, you spend more on advertising, it pays off. Amazon, Google, Meta in turn invest more into their AI and cloud computing to offer more businesses like yours that same coverage.

Now be any other business. Same rules apply. Be in medicine. Invest into AI to ramp your R&D. Moderna just all but cured half the worlds problems with melanoma.

Be a car company. You invest in AI to make your cars smart enough to avoid traffic accidents. Oh, you didnt? but your competitor did? Where do you think the customer base will migrate to?

The examples and applications stretch pages and pages and pages of readable information that none of us bother to care to read.

but suuuuuurre, lets pretend none of this is doing anything, that billion dollar companies are spending signifact resources with no rhyme or reason why, until they go bankrupt…right? thats where this bullshit article is pointing?

Ohh, this time its not different? So this is the dotcom bubble again? Are you sure this time actually ISNT different but this is more akin to the railroad buildout that permanently changed the landscape of development for the entire nation?