Look, we all love our AI overlords (kidding… mostly), but here’s the thing: while everyone’s throwing money at anything with “artificial intelligence” in the name, some seriously smart investors are quietly backing away from the AI hype train.
And honestly? They might be onto something.
The AI Bubble Is Getting Weird
Remember when your uncle started buying crypto because his barber’s cousin made a fortune on Dogecoin? That’s basically where we are with AI stocks right now. Companies are spending money like drunk sailors on AI projects, and investors are cheering them on.
Take Oracle – they just announced they’re dropping $50 billion this year on AI stuff. That’s a 40% increase from last year and $15 billion more than Wall Street expected. Microsoft? Their AI spending now represents 25% of their revenue. Ten years ago, it was basically nothing.
Here’s the kicker: most of Oracle’s revenue backlog is tied to OpenAI, a company that’s burning through cash faster than a teenager with their first credit card.
Why This Feels Like Japan in the ’80s
If you’re old enough to remember (or took a finance class), Japan’s stock market in the 1980s was absolutely bonkers. A handful of companies got so massive they represented 42% of the entire world’s stock market value by 1989.
Spoiler alert: it didn’t end well. The Nikkei lost over 80% of its value and took 34 years to recover.
Sound familiar? Today’s “Magnificent Seven” tech stocks are starting to look suspiciously similar – too much money chasing too few companies.
Enter the “AI Survivors”
Here’s where it gets interesting. While everyone’s obsessing over which AI will replace human workers, smart money is betting on companies that do things AI simply can’t replicate.
Think about it: AI can write code, generate images, and even compose music. But can it pour you the perfect craft beer while you complain about your day? Can it give you that satisfying feeling of a live concert or a perfectly prepared meal?
Nope.
The companies thriving in this space are what investors are calling “AI Survivors” – businesses built around human experiences, creativity, and that irreplaceable thing we call “being human.”
One example that’s been crushing it: a drive-through beverage chain that’s up 80% since August 2024. While AI stocks were having a meltdown last week, this company gained 5%. Why? Because people still want their coffee made by humans who can spell their name wrong on the cup – it’s part of the charm.
The Bottom Line
Don’t get me wrong – AI isn’t going anywhere. But when everyone’s zigging toward the same shiny object, sometimes the smart play is to zag.
As AI floods every corner of our digital lives, the companies offering genuine human experiences might just become the most valuable investments of all. After all, in a world full of artificial intelligence, authentic human connection becomes the ultimate luxury.
So while your neighbor’s bragging about their AI stock gains, maybe it’s time to look at companies that remind us what makes us human in the first place.