Yes, this rally seems overextended. But investor sentiment - if anything - has already swung to very negative, which isn't ideal if you want it to crash.
Bubbles don't pop without indiscriminate euphoria (Private markets are a different story, but VCs are fked anyways). If anything, the prices have reflected less than 20% of Capex projections, so the market clearly thinks OpenAI / Stargate / FAANG's capex plans are BS.
p.s. if everyone thinks it's a bubble, it generally rallies even more..
>If anything, the prices have reflected less than 20% of Capex projections, so the market clearly thinks OpenAI / Stargate / FAANG's capex plans are BS.
I'd say if anything the market is massively underestimating the scale of their capex plans. These things are using as much electricity as small cities. They are well past breaking ground, the buildings are going up as we speak.
Same thing happened with the dot-com boom and bust, except with fiber (later called dark fiber) and datacenters.
A lot of people lost a lot of money. Post bankruptcy, it also fueled the later tech booms, as now there was a ton of dark fiber waiting to be used at rock bottom prices, and underutilized datacenters and hardware. Google was a major beneficiary.
Bubbles don't pop without indiscriminate euphoria (Private markets are a different story, but VCs are fked anyways). If anything, the prices have reflected less than 20% of Capex projections, so the market clearly thinks OpenAI / Stargate / FAANG's capex plans are BS.
p.s. if everyone thinks it's a bubble, it generally rallies even more..