Sam Dickie

It's that the stock market is beating to one very narrow tune at the moment.

And you and I have talked about this before.

Actually, it's extremely concentrated.

Two stats for you there.

The top 10 companies in the S&P 500, the US Bellwether Index, make up 40% of the market.

So you put $100 over there and $40 goes to 10 companies.

Eight of those are tech.

All of those are beating to the AI drum.

And then these three companies that are coming, which is a bonanza of IPO money, are all beating to the AI drum, albeit SpaceX has some nuance there.

Well, I think every day that goes by and every day that the rally is narrower and certain companies are seeing sort of stratospheric valuations, we're getting closer to a bubble.

And we're starting to see some...

fairly eerie signs.

There's no doubt about it.

I wouldn't say we're in a full-scale bubble yet, but we're heading towards it.

Well, there's the vendor financing we talked about.

There's the extreme narrowness of the rally.

So the flavor of the month, so to speak, are memory stocks at the moment.

So

Really simply, back in the day when we first asked ChatGPT in 2023 who was the president of the United States in 1964, it was just a quick two-way conversation.

Now we want to have context and memory and remember what we asked at last time and get it to have outputs of PDFs and Excel, and it requires a huge amount of memory, these AI models to do that.