Jim Rickards Cites 95% AI Failures, Flags Meta’s July 29 Earnings
META•META•META•META•Financial analyst Jim Rickards warns a dot-com-style AI sector correction as 95% of corporate AI initiatives fail to deliver measurable returns. He highlights Meta Platforms Inc.’s July 29 earnings report as a potential catalyst that may expose the gap between AI spending and actual profitability.
Jim Rickards, known for predicting the 2008 financial crisis, cautions that the AI sector could face a correction akin to the dot-com crash. He points to massive capital outlays in AI infrastructure and notes that 95% of corporate AI initiatives have failed to generate measurable returns, raising concerns about overvaluation.
Rickards identifies Meta’s July 29 earnings report as a key event that could shift investor sentiment by revealing whether the company’s AI spending is translating into actual profits. Investors will scrutinize Meta’s AI-related revenue growth, margins and guidance to assess if the company can justify its significant investments in AI development.
