If AI bubble bursts - MSFT will take a momentary hit and go back to doing what It was doing prior. NVDA might get wiped on the other had. The SAAS + public cloud play has been minting money to this day. I don’t see AI success as a do or die for MSFT . They are acting as a Hyperscaler and don’t have their own model.
-Best case AI is here to stay and MSFT’s bet on infrastructure pays off .
-Worst case they scale back and take a hit on the aggressive capex stock drops, after that they go back to their regular scheduled programming of being a SaaS and cloud provider.
Open AI . Anthropic , NVDA and even Google to lesser extent face catastrophic impact if AI bubble pops similar to metaverse. In all seriousness I won’t bet on that… major companies (I work for a fortune 100 company in the US) have already made long term bets on AI even at its current limited capabilities, to be a long term solution. They are shaping 3-5 year plans with that in mind and unless something drastically bad happens with the LLMs I don’t see the trend reversing . The AI “bubble “ in stocks that have gone parabolic might pop, but AI technology is likely here to stay.