$NVIDIA Corp(NVDA)$ AI is indeed expensive, and just like in the dot com era there will be consolidation as competitors are forced to drop out and the winners take the lion's share of the profits. That's just how it's always been.
People were writing off $Microsoft(MSFT)$ for dead after the dot com bust, saying Microsoft was a one-trick pony and Windows would become irrelevant. But Microsoft re-invented itself and came back much stronger. A pure dot-com play, $Amazon.com(AMZN)$ , was labeled "just a book seller" and it fell from lofty heights during dot-com mania to 20% of its value before shooting back up again too eventually dominate the online retail space.
There are proper applications for AI, and the companies that are able to determine what they are and profit from it will be tomorrow's tech giants. Too write off all of AI is too broad of a stroke.
Having said that, semiconductors ARE cyclical so I would not be surprised to see NVDA pull back quite a bit.
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