There isn't just one AI bubble, strategist says

Live updates

1. 23d ago

   Apple Cuts AI and Vision Pro Jobs Amid Market Bubble Warnings

   Apple is cutting over 200 jobs within its Siri AI and Vision Pro teams as part of a major reshuffle. This occurs while some analysts warn of a brewing AI bubble and a broader risk-taking bubble in the stock market. These layoffs suggest internal instability at a major tech firm despite an unprecedented surge in demand for AI quant developers in the financial sector. The situation highlights a disconnect between high AI spending and the actual profit margins of the companies deploying the technology.

   Why it matters

   Strategists previously described the AI boom as a rolling sequence of bubbles where spending does not match earnings growth. The timing of when AI impacts profits determines which tech stocks survive a potential bust.

   Still unconfirmed

   • Apple is cutting more than 200 jobs in a reshuffle of its Vision Pro and Siri AI teams.
   • A risk-taking bubble in the stock market may be popping.
   • An AI bubble may be brewing.

   What to watch next

   • Quarterly profit margin reports from GAFAM companies.
   • Further layoff announcements from major AI developers.
   • Data on the conversion of AI spending into corporate earnings.
   Sources used for this update (6)

   1. techrights.org — Links 22/08/2026: Prince Harry, Elton John and Others Pay High Price for Frivolous Litigation in the UK
   2. www.aol.com — The S&P 500 Is Near an All-Time High. Here's What History Says Investors Should Do.
   3. techrights.org — Another Round of GAFAM Layoffs, This Time Apple
   4. www.aol.com — Trump is in another unwinnable war – this time with the bond market
   5. www.thetechedvocate.org — Unbelievable: These 7 Courses Will Catapult Your Career as an AI Quant Developer
   6. www.fool.com — The stock market's risk-taking bubble may be popping
   confidence 70%
2. 29d ago

   AI spending surges, but profit gains remain elusive

   The AI spending boom is not yet boosting profit margins for companies. Strategists describe a 'rolling sequence of bubbles' in AI, with surging spending not translating to earnings growth. While some tech stocks may be well-suited to survive an AI bust, the timing of AI's impact on profits is crucial.

   Why it matters

   The AI industry is experiencing significant investment, but the returns on this spending are not yet clear. This has led to concerns about an AI bubble and the potential for a market correction. The impact of AI on corporate earnings is a key factor in determining the long-term sustainability of the industry.

   What is confirmed

   • AI spending is surging, but profit gains remain elusive.
   • Companies are not seeing a boost in profit margins from AI spending, at least not yet.
   • There is a 'rolling sequence of bubbles' in AI.

   What to watch next

   • Goldman Sachs' future assessments of AI's impact on corporate earnings
   • The release of financial reports from major AI investors and companies
   • Signs of AI-driven productivity benefits in various industries
   Sources used for this update (8)

   1. Barron's — AI Spending Boom Isn’t Boosting Profit Margins—at Least Not Yet
   2. Fortune — There isn't just one AI bubble, strategist says — there's a 'rolling sequence of bubbles' instead
   3. Currently.com — Worried About an AI Bubble? These Tech Stocks Are Well-Suited to Survive an AI Bust.
   4. CNN — AI boom or bubble? Timing is everything
   5. bloodinthemachine.com — The State of the AI Bubble with Ed Zitron
   6. Seeking Alpha — AI spending is surging, but profit gains remain elusive, Goldman Sachs says (XLK:NYSEARCA)
   7. PYMNTS.com — Goldman Sachs Says AI Spending Not Boosting Corporate Earnings
   8. Seeking Alpha — Companies that could see the biggest AI productivity benefits - Goldman
   confidence 80%