AI bubble or babble? How to understand and make money on the latest tech revolution

Are you all in on AI, or are you bracing for an AI-pocalypse? While Wall Street wagers on skyrocketing profits at artificial intelligence firms and chipmakers alike, regular joes worry about big, noisy, water-hogging data centers – not to mention their jobs.Many, no doubt, have been prompting their chatbots to navigate the latest convulsions. Yet AI’s future remains largely unknown – even to supposed “experts.” Take the case of Leopold Aschenbrenner – the 25-year-old “Nostradamus of AI” whose high-flying hedge fund Situational Awareness got laid low by its leveraged bets on a bumpy sector. That notable casualty notwithstanding, the doom-and-gloom AI “bubble” babbling you hear is broadly bogus, as I explained last December.

Conversely, buying stocks on grandiose AI speculation and recent IPO hype amounts to peak arrogance. Indeed, with every prospect ceaselessly vetted – whether it’s a headfake, a conundrum or a once-in-a-generation opportunity – knowing something that others don’t is impossible.Stocks pre-price it all.AI cassandras warn of fast, vast and tough-to-stomach changes – among them the widely broadcasted “jobpocalypse.” AI is US businesses’ top cited reason for 2026 layoffs.

This year’s tech job cuts have already surpassed 2025’s full-year total.Oracle is reportedly eyeing firings next month to offset its huge AI infrastructure debt.

That’s after slashing over 20% of its workforce in its latest fiscal year. Doomsters crucial mistake? Wrongly supposing that innovation destroys but doesn’t at the same time create – an age-old error. In 1981, economists widely warned that computers would displace workers in droves.What happened instead? Jobs changed, workers learned new skills.

Life improved.The ‘80s were pretty good for America’s economy.

The ‘90s, too.The pattern permeates history – and will continue to do so.Thus far, the evidence shows that AI often spurs retraining and expanded h...