Apollo's chief economist warns the AI bubble worse than the 1999 dot-com bubble

Not investing advice. A lot of the S&P value is currently predicated on GPUs: Google, Meta, Microsoft, Nvidia, Tesla to a lesser extent. You could buy long dated deep out of the money puts if you think the AI thesis will implode. But, to be early or late is the same as being wrong. Tread carefully.

> Back in May, Yahoo Finance's Laura Bratton reported that Microsoft (18.9%), Amazon (7.5%), Meta (9.3%), Alphabet (5.6%), and Tesla (0.9%) alone make up 42.4% of NVIDIA's revenue. The breakdown makes things worse. Meta spends 25% — and Microsoft an alarming 47% — of its capital expenditures on NVIDIA chips, and as Bratton notes, Microsoft also spends money renting servers from CoreWeave, which analyst Gil Luria of D.A.Davidson estimates accounted for $8 billion (more than 6%) of NVIDIA's revenue in 2024. Luria also estimates that neocloud companies like CoreWeave and Crusoe — that exist only to prove AI compute services — account for as much as 10% of NVIDIA's revenue.

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> In simpler terms, 35% of the US stock market is held up by five or six companies buying GPUs. If NVIDIA's growth story stumbles, it will reverberate through the rest of the Magnificent 7, making them rely on their own AI trade stories.

https://www.wheresyoured.at/the-haters-gui/

https://news.ycombinator.com/item?id=44645391