Gary Marcus says the free pass for AI companies is over and tech stocks will plunge
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Gary Marcus says that once people realize AI companies no longer enjoy a free pass, tech stocks will plunge. The market diverged the day after he posted: neocloud companies such as CoreWeave were hit hard, while large companies such as Amazon, Apple and Google rebounded. Marcus offered one explanation: investors are rotating from smaller neocloud companies to large tech companies better able to withstand a cash crunch.
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- Gary MarcusBreaking: Mayhem in the market 🫧
Gary Marcus recalls being criticized on X for predicting tech stocks would crash once AI companies lost their free ride, noting that the following day's market was mixed, with chipmakers and neocloud firms like CoreWeave hit hard while Amazon, Apple and Google bounced. He cites theories that investors were rotating into larger tech companies or expecting hyperscalers to curb AI data-center capex, partly due to public resistance to data centers and election results. He says today looks different: "It's a slaughter. Almost no company is exempt."
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