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  1. All-In Podcast1 min

    David Sacks: The Chip Stock Crash is Based on Momentum, NOT Fundamentals

    David Sacks

    A recent 10% Nasdaq correction was driven by the unwinding of highly leveraged momentum trades in AI and memory chip stocks, which suffered steeper 30% to 40% declines. Market observers distinguish this volatility from a fundamental bubble, noting that such fluctuations often accompany rapid price surges in sectors like those seen in South Korea. Despite the sharp pullback, the prevailing view remains that current capital expenditures in artificial intelligence will eventually generate returns.