I assume AI to be a dotcom 2.0 and IT IS a dotcom 2.0, there's no arguing with that, it's even worse for many stocks as dotcoms didn't burn billions in the furnace, top bubbles like OpenAI burned tens of billions, the valuations look insane even with inflation adjusted.
**Microsoft is not the shovel seller but the buyer**
If we account for the bubble spending Microsoft's P/E is 40-50 - 50% wasted capex
It's 350-400 P/E - 100% wasted capex
Microsoft P/E was x60 during dotcom, we're close to that number just with the optimistic capital loss.
So why people here question Microsoft being "undervalued"? it's own AI shits on Microsoft's spending and calls it wishful thinking:
"Microsoft’s AI capex is:
* insanely high
* not producing visible profit
* not producing margin expansion
* not producing cash flow
* not producing sustainable demand
Right now, the ROI is **wishful thinking**, not math."
Before you say HERP DERP AI SLOP
Yeah, but you're investing in it, no? so if it's a slop then the whole company betting $200b on that slop will go down with the ship.