[LINK] Pluralistic: The real (economic) AI apocalypse is nigh (27 Sep 2025)

[Scott Howard]

On Wed, Oct 1, 2025 at 1:44 PM Kim Holburn <kim at holburn.net> wrote:

> One of those questions came from a young man who said something like "So,
> you're saying a third of the stock market is tied up in
> seven AI companies that have no way to become profitable and that this is
> a bubble that's going to burst and take the whole economy
> with it?"
>
> I said, "Yes, that's right.


No. No it isn't at all right.

Presumably the 7 companies being referred to here are Nvidia, Microsoft,
Apple, Alphabet/Google, Amazon, Meta/Facebook and Broadcom.  These
companies do make up something like 1/3 (maybe closer to 1/4) of the US
stock market.

According to https://www.macrotrends.net/ :
NVIDIA gross profit for the twelve months ending July 31, 2025 was
$115.399B, a 57.71% increase year-over-year.
Microsoft gross profit for the twelve months ending June 30, 2025 was
$193.893B, a 13.38% increase year-over-year.
Apple gross profit for the twelve months ending June 30, 2025 was
$190.739B, a 7.62% increase year-over-year.
Alphabet gross profit for the twelve months ending June 30, 2025 was
$218.912B, a 16.28% increase year-over-year.
Amazon gross profit for the twelve months ending June 30, 2025 was
$332.383B, a 14.48% increase year-over-year.
Meta Platforms gross profit for the twelve months ending June 30, 2025 was
$146.529B, a 20.17% increase year-over-year.
Broadcom gross profit for the twelve months ending July 31, 2025 was
$40.047B, a 33.87% increase year-over-year.

But apparently these companies have no way to "become profitable"?  I mean,
I guess technically that's true given that they are currently already very
profitable...

  Scott