Escaping The AI Bubble

The exciting potential of AI has put Wall Street in a frenzy. The exciting potential of AI has put Wall Street in a frenzy.                                                                                                      Editor’s Note: When we see offers from other publishers that might interest you, we pass them along. Below you’ll find one from our friends at Stocks & Income. Please note that their opinions may differ from what you read in Behind the Markets. You are receiving this email because you are subscribed to Behind the Markets. If you no longer wish to receive these partner emails, please [unsubscribe]( here. --------------------------------------------------------------- Dear Reader, The exciting potential of AI has put Wall Street in a frenzy. But beneath the intoxicating gains and headline-grabbing success stories, whispers of overvaluation grow louder. Consider Nvidia's market capitalization, which catapulted from $350 billion to $1 trillion within just five months. Today shares trade in excess of 40 times sales. That's on par with the most extreme valuations of the internet bubble. It's a similar story for a number of other AI-related names, including fellow blue-chips like Microsoft and Adobe (each trading at ~12x sales), as well as other tech darlings like Atlassian (14x), Palantir (16x), C3.ai (17x), and Snowflake (23x). At this rate, the AI-driven euphoria looks to be concealing a dangerous bubble. But that doesn't mean that the bubble won't continue to inflate. Nor does it mean that the buck stops there. Fortunately, given AI's puzzling trajectory, today's hype in AI is setting up tremendous opportunities elsewhere… To learn more, [download our report.]( All the best, Stocks & Income P.S. We figure that the best way to capitalize on any "gold rush" is to invest in the "picks and shovels" businesses – the indispensable companies that provide equipment and services to all of the competitors. We call them "backdoor" stocks. [Here are seven of them hidden inside today's AI boom.]( Our mailing address is: Behind the Markets, LLC 4260 NW 1st Avenue, Suite 55 Boca Raton, FL 33431 Copyright © 2023 Behind the Markets, LLC, All rights reserved. You're receiving this email as part of your subscription to Behind the Markets. For more information about our privacy practices, please review our [Privacy Policy]( or our [Legal Notices.]( [Unsubscribe](