It may not be an imminent bubble burst, but too many people are also acting as if stocks up 200% in a year are in early innings and then are surprised when they lose 30-50% in a month the moment sentiment turns slightly. I've seen people treat the speculative data center names in recent months like demand will be endless and this is just the start. Shortly after, NBIS is down 32% in a month and CRWV 45%. "the major players are investing heavily in AI and evolving rapidly." And the stocks are priced as if that's the case. Look at the Deepseek situation early this year - while the AI theme certainly rebounded, things like VRT and VST were down 25-35% in a matter of a few days - and then kept going lower until rebounding off the April low. So I'm not saying that there's an imminent bubble, but the easy money in AI imo has been made. Corrections will happen, but more broadly if you're now piling into AI at this point you have to really hope that the strength of the theme is maintained because the moment momentum starts to slow/concerns start to appear it looks like CRWV in the last month, or ORCL over the last couple of months. Even META is down nearly 20% since the end of October. "I’d like to focus on companies involved in building data centres" FIX and STRL are up 100%+ YTD (and massively over the last 5 years) and a lot of that is on the strength of the data center theme. If something caused that theme to slow or stop, there's not another growth theme of that magnitude for these names. FIX is up 700% since the beginning of 2023 - could it keep doing well? Sure, but I don't see where another 700% comes from given the nature of the business and if the strength of the data center theme slows materially I would not be surprised if it's down 50%. Very good company but the continued rate of growth is very very heavily reliant on the data center theme continuing the pace of growth it's had. I'm not bearish, I'm not thinking that there's a bubble that will imminently pop (although if the speculative stuff that's been particularly obliterated lately doesn't bounce within a reasonable time frame maybe this is this period's Feb 2021?) but on the opposite end, I don't think it's early either and a lot of the easy money has been made. More on reddit.com

It's also entirely possible this is a bubble, it's actually already popping, and the market will continue to rise. Per Ben Carlson: These are the recent maximum drawdowns for a handful of giant technology stocks: Oracle -46% Meta -25% Netflix -30% Nvidia -17% Broadcom -21% AMD -25% Sans Netflix, these are some of the biggest names in the AI trade. This is what everyone has been worrying about for quite some time now. What happens when the AI trade unwinds? These companies are worth a combined ~$9 trillion in market cap. Surely the stock market is falling right? No (and don’t call me Shirley). More on reddit.com

I will continue to hold my semiconductors: Nvidia, Broadcom, and TSMC. let them continue to grow and water them on any significant dip. Instead of trimming them as they grow, I just rebalance by buying more into my other positions which helps manage risk. They are about 39% of my portfolio which I am ok with. There are other great semiconductor companies, however I have found those 3 to be the ones I am most confident in. More on reddit.com

Sounds more like you’re being fearful when others are being greedy More on reddit.com