Jeff Bezos stated at Italian Tech Week that artificial intelligence is experiencing an “industrial bubble,” where excitement drives stock prices beyond their true value. This echoes past technology bubbles, like the dot-com crash.
Bezos Discusses AI Bubble Phenomenon
During a discussion with Exor CEO John Elkann, Bezos confirmed that the current excitement around AI causes significant investment in both viable and non-viable ideas. He remarked that this behavior is “very unusual.”
Despite this, Bezos emphasized that AI is a genuine technology that will significantly impact all industries. He likened the current situation to the biotech bubble of the 1990s, which led to important medical advancements despite many startup failures.
Predictions for the Market and Amazon
Bezos believes that similar beneficial outcomes will result from the AI bubble. He noted that once the initial hype subsides, only robust companies will remain, ultimately benefiting society.
Other industry leaders, like OpenAI’s Sam Altman and Goldman Sachs’ David Solomon, have expressed similar views, anticipating that a market correction will occur eventually.
Wall Street’s View on Amazon Stock
Analysts currently rate Amazon stock as a Strong Buy based on 44 Buys in the last three months. The average price target for AMZN is $266.66, suggesting a potential upside of 19.7% from its current level.
