The AI Stock Comedy: A Fool’s Errand?

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It is a truth universally acknowledged, that a fellow possessed of five thousand dollars must be in want of a speculative investment. And what spectacle could be more diverting to the discerning eye than the current frenzy surrounding these so-called ‘Artificial Intelligences’? One hears pronouncements of future fortunes, whispers of technological singularity, and the predictable chorus of investors eager to believe any tale, however improbable.

The common delusion, you see, is that all stocks pertaining to this ‘AI’ are priced beyond the reach of mortal men. A most convenient narrative for those who wish to keep the spoils to themselves. But let us, with a touch of skepticism, examine a few contenders, and see if fortune might favor the moderately funded fool.

Act I: The Semiconductor Player

First, we have Advanced Micro Devices (AMD 6.13%). A company that, at first glance, appears to demand a king’s ransom for a single share. Indeed, the numbers are… robust. A price-to-earnings ratio that would make Croesus blush. Yet, observe! Beneath the gilded surface lies a potential for growth, fueled by this insatiable appetite for ‘AI.’ The company assures us, with the unwavering confidence of a seasoned actor, that revenue from ‘AI data centers’ shall increase by an annual rate exceeding eighty percent. A bold claim, to be sure, but one readily accepted by an audience eager for sensation.

They chip away, as it were, at the dominion of Intel (INTC 4.50%), and venture into the realm of graphical processing. A most ambitious undertaking, and one that, if successful, might justify the current valuation. Or, it might not. The stage is set for a grand performance, but the outcome remains uncertain.

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Act II: The Memory Merchant

Then comes Micron Technology (MU 4.87%). Once considered merely a purveyor of commodities, these memory chips are now hailed as treasures, thanks to this ‘AI’ boom. A most convenient transformation. The company’s valuation, while not exorbitant, is hardly negligible. They have secured contracts for their entire 2026 supply, a testament to their foresight… or perhaps merely a reflection of the prevailing hysteria.

The CEO speaks of ‘sustained and strong industry demand,’ and predicts a market reaching one hundred billion dollars by 2028. A most optimistic forecast, and one that, if realized, would undoubtedly benefit those holding shares. But let us not mistake hope for certainty. The supply of these chips may yet exceed demand, and leave investors with nothing but regrets.

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Act III: The Established Sovereign

Finally, we arrive at Nvidia (NVDA 0.72%). A company that, until recently, was deemed overpriced by even the most ardent of speculators. But now, emboldened by the promise of ‘AI,’ the valuation has soared to dizzying heights. The company projects an annual AI infrastructure spending of three to four trillion dollars by the end of the decade. A sum so vast that it strains the very limits of credulity.

They claim their GPUs are the most powerful on the market, and promise even more advanced chips in the near future. But competition is fierce, with Broadcom (AVGO +0.15%) and others vying for a piece of the pie. Yet, Nvidia remains the dominant player, and its shares continue to climb. A most remarkable performance, and one that suggests the current valuation may, in fact, be justified. Or, it may simply be a bubble waiting to burst.

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Thus concludes our little farce. Whether these companies shall deliver upon their promises remains to be seen. But one thing is certain: the pursuit of fortune is a most amusing spectacle, and the investor, a most willing participant. And let us not forget, the house always wins.

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2026-02-01 12:52