AI Bubble Could Burst, Safer Bets Are Meta and Baidu
-
Artificial intelligence (AI) is generating a lot of hype and investment, but like other "next big things" it may be in a bubble that could soon burst.
-
Nvidia has become the face of AI but faces increased competition and lower prices as supply increases, putting it at risk if AI enthusiasm fades.
-
Meta Platforms is using AI in various ways but its core social media business would protect it if AI investments don't pan out.
-
Baidu is making big AI bets but search advertising remains its bread and butter, and China's reopening offers growth potential.
-
Both Meta and Baidu are historically cheap compared to Nvidia, making them smarter buys if the AI bubble pops.