As investors pour billions into artificial intelligence, tech experts warn that a bubble could be forming. Kim Forrest, Chief Investment Officer, Bokeh Capital Partners joined TheStreet to discuss the potential warning signs.
Full Video Transcript Below:
CONWAY GITTENS: So for you, do you see any flashing warning signs that there’s an AI bubble forming? And what role does Nvidia play in that?
KIM FORREST: Yeah, sure. Because I don’t know what problem it’s solving. Everybody thinks it’s cool, and this is a danger sign. It’s always a danger sign for me that if I can’t identify the business problem that the technology is solving, it’s a bubble. If I don’t know the problem, I don’t know the price people are willing to pay for it. At the end of the day, we are investors. We are not technology fans. We are not like just sitting here going the books. The sci-fi books that I read growing up are coming to, you know, be true. Now, that’s all interesting, but we want to make money. And I think that’s the biggest issue. Another issue is everybody loves Nvidia, especially its competitors. They’d love to have, you know, margins in the 60s. So there is a fair amount of people that are probably going to come after them. And we haven’t really talked about that, but that is an issue for them as well. They have leadership now, but it’s a difficult leadership to maintain.
