Remember Danny Moses? He’s one of the guys from “The Big Short” who made bank betting against the housing market in 2008. Well, he’s back with some thoughts on AI, and spoiler alert: he thinks we’re in bubble territory again.
Now before you roll your eyes and think “here we go again with the bubble talk,” Moses isn’t some doom-and-gloom prophet. He’s actually saying AI is legit – it’s a real growth story that’s going to change everything. But (and there’s always a but), he’s seeing some eerily familiar patterns from the dot-com days.
“The growth was real, but the math didn’t work,” Moses told Business Insider about the early 2000s tech boom. “And I think that we’re reaching a point where the math is starting not to work.”
Translation: Yes, AI is revolutionary. No, that doesn’t mean every AI stock should be trading at astronomical valuations.
Here’s where it gets interesting though – Moses isn’t telling you to short everything AI-related. That would be like throwing the baby out with the bathwater (and probably a good way to lose your shirt). Instead, he’s basically saying “be picky, people.”
His strategy? Stick with the big dogs who have deep pockets and multiple revenue streams. Think Amazon, Google, Meta, and Microsoft. These companies can dial back their AI spending if things get weird and still be printing money from their other businesses. They’re like that friend who always has a backup plan.
On the flip side, Moses is side-eyeing companies like Oracle (too much debt, too dependent on AI orders) and the more volatile plays like Super Micro Computer. These are the companies that live and die by the AI hype cycle.
What’s actually encouraging is that Moses thinks investors are finally starting to separate the wheat from the chaff. The market is beginning to reward companies with solid fundamentals over pure AI buzz, which is honestly about time.
Oh, and here’s a curveball – Moses is bullish on uranium. Why? Because all this AI infrastructure needs massive amounts of power, and nuclear energy is looking pretty attractive right now. The catch? It’s going to take way longer than most people think for this to play out. So if you’re jumping into uranium stocks expecting quick gains, you might want to pack a lunch… and maybe a sleeping bag.
The bottom line? AI isn’t going anywhere, but not every company with “AI” in their pitch deck deserves your money. Moses survived one bubble by doing his homework and thinking critically about valuations. Maybe it’s time we all took notes.
After all, as the saying goes: “Those who don’t learn from history are doomed to repeat it.” And nobody wants to be holding the bag when the music stops.