Not much needs to be said here. Compare the stock values and revenues of AI companies such as Nvidia, OpenAI, and Anthropic with retailers and industries such as Amazon, Walmart, Exxon, McDonald’s, and Lockheed Martin. In all cases, AI companies currently have greater values than revenues. The retailers and industries, especially Walmart and Exxon, exhibit the opposite trend.
Revenues are the total income generated by the sale of goods or services, indicating a company’s operational success.
Stock values reflect the market’s perception of a company’s future growth potential and profitability. They are influenced by various factors beyond just current revenues.
Clearly, the markets see AI companies as having exceptional future growth potentional. But remember the Tech Bubble from 1995 to 2002? We should know by now that the markets are notoriously hopeful.
This is the market crash danger that you are hearing and reading about in the media.
Chart published at DailyKos
