This is nuts upon nuts. When's the crash?
The article questions whether current market exuberance, particularly in tech and AI stocks, has gone too far, drawing parallels to past bubbles and warning that a correction may be imminent as valuations become increasingly disconnected from fundamentals.
Background
This is a Financial Times column by Robert Armstrong and Ethan Wu, authors of the "Unhedged" newsletter, which covers markets and investing. The piece is a skeptical take on a recent market milestone: Nvidia (the dominant AI-chip maker) overtook Apple to become the world's second-most-valuable company, just behind Microsoft. The authors argue that Nvidia's stock price is being driven by extreme, unprecedented profit expectations that leave no room for error, and they warn that the "vibe" around AI stocks has become dangerously complacent, drawing parallels to past tech bubbles. Understanding this requires knowing that Nvidia's market cap surged roughly 200% in the past year on surging AI demand, and that its valuation now reflects future profits that must materialize with near-perfect precision for the stock to be fairly priced. The "crash" in the title signals the authors' worry that any disappointment could trigger a sharp sell-off.