What’s The AI Plan, Stan?

The tech market just sent a wakeup call to once carefree financial advisors and investors who gobbled up high flying AI related stocks.

Alphabet (Google -10 %), Meta (Facebook), Amazon (-10 %) , Nvidia and Intel (-30 %) all got crushed with stocks suffering their worst month in over a year.

The “Magnificent 7 “ hardly look like the best place for investors to put their retirement nest eggs.

The rush to build enormously costly data centers to power AI led to tech companies with trillion dollar valuations. Facing political backlash from residents near data centers and running out of funding may slow the data center push.

This comes at a time when Anthropic and OpenAI are set to go public in IPOs that would give them trillion dollar valuations.

Do we really need so many AI search options like ChatGPT, Anthropic’s Claude, Alphabet’s Gemini, Perplexity?

Do we need a massive data center in every city and town?

Which of the companies involved in AI will be profitable?

Stated differently, what’s the AI Plan Stan?

Tech CEOs owe a fiduciary duty to shareholders to give them an honest assessment of their AI business prospects. Rather than just borrow and spend on AI infrastructure, companies need to be transparent about the expected return on investment ( ROI ) and computing needs and capacity.

If investors are suffering large losses from an over concentrated portfolio in tech and AI stocks, its time to consult  an   investment fraud lawyer  to assess if broker misconduct took  place.