Is the AI Bubble on the Verge of Bursting, Potentially Triggering a Stock Market Crash? | Philip Inman

An increasing anxiety surrounds the possibility of a stock market collapse. The rise from minor dips to significant drops casts shadows as the initial excitement surrounding artificial intelligence begins to wane.

In recent weeks, U.S. tech stocks have faced a downward trend, suggesting that a stream of disappointing figures could become commonplace before the end of the month.

We may be looking at a scenario reminiscent of 2000, where the burst of the dot-com bubble could lead to a grim situation.

Federal Reserve Chairman Jerome Powell is among those policymakers responsible for guarding against impending crises. At the annual Jackson Hole meeting with central bank governors in Wyoming, he sought to reassure worried minds.

He expressed that the Fed is concerned about increasing inflation and is prepared to assist the economy in overcoming the uncertainties brought on by Donald Trump’s actions and the global economic slowdown.

With STAGFLATION looming, there’s a genuine threat as the U.S. economy decelerates and inflation rises. Powell has indicated to stock markets that interest rates may decrease, relieving pressure on companies dependent on debt.

The stock market draws Powell’s attention even more than usual, given the extent of U.S. personal pensions invested in publicly traded companies. Specifically, tech stocks are heavily investing in AI, despite not yet achieving a single dollar in profit.

A recent study from the Massachusetts Institute of Technology uncovered that 95% of companies investing in generative AI have not yet realized financial returns.

This news follows remarks from Sam Altman, CEO of OpenAI, who cautioned that some company valuations appeared “unusual.”

“We are happy to announce Ipek Ozkardeskaya, a senior analyst at the currency trading firm Swissquote,” remarked Ipek Ozkardeskaya. Altman’s comments served as a wake-up call for investors, likely triggering a sharp decline in various high-flying stocks.

Earlier this week, stock values for data mining and surveillance companies with substantial government contracts dropped almost 10%. AI chip manufacturer Nvidia declined by more than 3%, while other AI-related stocks such as ARM, Oracle, and AMD also suffered losses.

Most pension funds are heavily invested in these tech firms, along with established names like Amazon, Microsoft, Alphabet (Google), and Meta (Facebook).

Should fund managers consider withdrawing? That’s likely not a prudent choice.

The magnitude of investments in AI by companies like Google and Meta is vast, and while the technology’s potential is subject to much speculation, white-collar workers are already seeing expected benefits in their daily tasks.

Daily reports and suggestions for utilizing AI in presentation preparation are commonplace (though they come with the unspoken caveat that job openings remain unaddressed).

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Microsoft Co-Pilot and numerous other “assistance” AI tools are available.

If this trend has already gained momentum across various economic sectors, a soft landing may await the tech industry, despite the elimination of some unstable, speculative enterprises.

In fact, a recession could facilitate large corporations in seizing opportunities from struggling competitors and leveraging new, affordable technological innovations.

The ratio of Palantir’s price to acquisition is over 500. Many investors are anxious even at a 50 ratio. Nvidia’s price to return ratio stands at 56.

As stock prices align with realistic revenue prospects, the Palantir/Nvidia ratio might decline; however, even in the harshest stock market turbulence, companies are unlikely to go bankrupt.

Trump remains a significant proponent, paving the way for AI to delve deeper into corporate operations. His advocacy for cryptocurrencies, along with his support for deregulated social media platforms, reflects his ideological leanings.

AI may pose potential dangers to humanity, given that politicians and regulators lag behind the notable figures and tech giants championing AI.

However, for investors, AI is not an entity that will simply vanish, crash, or evade downfall.

Source: www.theguardian.com

Philip Sunshine, 94, Passes Away; Doctors Innovate Treatments for Premature Infants

Philip Sunshine, a physician at Stanford University, significantly advanced neonatal theory as a medical specialty, transforming the care for premature and severely ill neonates, who previously faced little hope of survival. He passed away on April 5 at his home in Cupertino, California, at the age of 94.

His daughter, Diana Sunshine, confirmed his death.

Before Dr. Sunshine and a few other dedicated doctors took an interest in caring for infants in the late 1950s and early 1960s, more than half of these incredibly vulnerable patients died shortly after birth, often without insurance coverage for their treatment.

As a pediatric gastroenterologist, Dr. Sunshine believed that with proper attention, many premature babies could be saved. At Stanford, he assembled a multidisciplinary team to treat these infants in specialized intensive care units. Alongside his colleagues, he developed innovative feeding methods and breathing assistance techniques using ventilation.

“We managed to keep babies alive who would have otherwise not survived,” Dr. Sunshine recounted during an interview in 2000 with the Pediatric History Center at the American Academy of Pediatrics. “And now, this progress is often taken for granted.”

The early 1960s marked a pivotal moment for the care of premature babies.

As noted by the Oxford English Dictionary, the term “Neonatology” first appeared in the 1960 book “Isises of Newborn” by pediatrician Alexander J. Schaffer from Baltimore. By that time, Stanford’s Neonatology School, one of the nation’s earliest schools for this field, was already functional.

In 1963, Patrick Bouvier Kennedy, the second son of President John F. Kennedy, was born nearly six weeks prematurely and sadly passed away just 39 hours later. This tragic event captured the attention of newspapers across the nation and spurred federal health officials to begin funding research focused on newborns.

“Kennedy’s situation was a significant turning point,” Dr. Sunshine remarked in 1998 to Aha News, a publication of the American Hospital Association.

Serving as the Newborn Dean at Stanford from 1967 to 1989, Dr. Sunshine played a crucial role in training hundreds, if not thousands, of doctors who went on to work in neonatal intensive care units worldwide. Upon his retirement in 2022 at the age of 92, the survival rate for babies born at just 28 weeks had surpassed 90%.

“Phill is one of the pioneers in neonatology—an exceptional neonatologist and one of the finest in our field’s history,” stated David K. Stevenson, the head of the neonatology division at Stanford, who succeeded Dr. Sunshine, in a 2011 graduate journal.

Dr. Sunshine understood that providing care for young children involves both technical skills and personal connection. He advocated for allowing parents to visit the neonatal intensive care unit to hold their newborns, noting that skin-to-skin contact was highly beneficial.

He also encouraged nurses to exercise their judgment and express concerns when they felt something was amiss.

“Our nurses have always been invaluable caregivers,” Dr. Sunshine recounted in oral history. “Throughout my career, I collaborated with nursing staff who often recognized baby issues before the doctors did, and they continue to do so.”

A newborn nurse who worked alongside Dr. Sunshine for over 50 years shared in a blog post for Stanford Medicine, “Phil exuded a deep kindness—towards the babies, us, and everyone around him.”

“He viewed everyone as equally important,” she commented.

It was a challenging journey, and the pressure was immense.

“He had a calming, encouraging presence and was completely unflappable,” Dr. Stevenson said in an interview. “He would often say, ‘If you’re going to be up all night in the hospital, what better way to spend your time than by giving someone 80 or 90 years of life?'”

Philip Sunshine was born in Denver on June 16, 1930, to parents Samuel and Molly (Fox) Sunshine, who owned a pharmacy.

He earned his bachelor’s degree from the University of Colorado in 1952 and graduated from medical school in 1955.

After his first year of residency at Stanford, he was drafted into the US Navy, where he served as a physician. Upon returning to Stanford in 1959, he trained under pediatrician Louis Gulac, later developing a modern neonatal intensive care unit at Yale University.

“He inspired my passion for caring for newborns and made the field so fascinating,” Dr. Sunshine recalled. He stated.

Since there was no neonatal fellowship available at the time, Dr. Sunshine pursued advanced training in pediatric gastroenterology and pediatric metabolism fellowships.

“This was a really thrilling period,” he commented in a Stanford Medicine Children’s Health blog post. He remarked. “People from diverse backgrounds were contributing valuable skills for newborn care—like neonatal specialists, cardiologists, and those with interests in gastrointestinal issues with infants. I learned a wealth of information and enthusiasm from them.”

Dr. Sunshine married Sarah Elizabeth Vryland, dubbed Beth, in 1962.

He is survived by his wife, daughter Diana, four other children—Rebecca, Samuel, Michael, and Stephanie—and nine grandchildren.

In many ways, Dr. Sunshine’s surname aptly captured his essence; it resonates perfectly with his profession and approach.

“Beyond being a pioneer in neonatology, he truly brought light to every environment he entered,” Susan R. Hintz, a neonatologist at Stanford University, shared in an interview. “He was a soothing presence, especially during incredibly stressful times. Nurses frequently remarked, ‘He is someone everyone remembers.’

Source: www.nytimes.com