Hartnett: The Regional Bank Crisis Is Stoking The AI Bubble Because Powell Has Become A Paper Tiger

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by Tyler Durden
Sunday, Feb 04, 2024 - 01:44 PM

One week ago, BofA's Chief Investment Officer Michael Hartnett, listed the three things that will pop the AI bubble. Clearly, over the past 7 days, none of those things happened and instead we have seen the latest thrust higher by some of the most vocal names in the space (this time it was AMZN and the lunatic melt up by META which we recently learned owes the bulk of its ad revenue growth to China, and which on Friday rose by more than its entire value in late 2022). One reason for that may be a rotation out of everything else into just the handful of names (and it's not really the Magnificent 7 anymore which has split into the "Meh 3" and the "Fab 4") that still show earnings growth...

... but there may be a simpler reason for this relentless ascent: we are now in another tech bubble.