🫧 Is AI a bubble yet? Our five gauges say no
Exponential View Azeem Azhar â—Ź Covered by 8 sources
The article reports that its five “boom-or-bubble” gauges for AI investment are not yet in the red, with AI revenues still rising. AI revenues reached $126 billion over the last twelve months as of July, while semiconductor stocks saw a severe correction that cooled some public valuations. It updates its capex counting methods and warns that funding quality has deteriorated since Sep 2025, with the gauges’ base case turning red during 2027 if economic strain and risk materialize.
Why it matters
Demand is justifying all the spending, but the spending is getting harder to unwind