AI stocks are soaring again, but history suggests investors may be underestimating the risks. Chuck Zodda and Paul Lane break down the explosive rally in semiconductor stocks as AI demand drives massive gains across the tech sector, even as warnings about boom-and-bust cycles begin to grow louder. Also covered: Why chipmaker margins are reaching extreme levels again How AMD, NVIDIA, and AI infrastructure spending are reshaping markets Whether companies are actually using AI to replace workers Why mortgage rates are rising again despite hopes for Fed cuts The changing economics of Florida real estate after the pandemic boom Disney’s new long-term strategy focused on gaming and AI Why some experts believe emotionally aware robots may be closer than people think What happens if the AI boom starts following the same pattern as past tech cycles.

The AI Boom Is Starting to Look Dangerous

The Financial Exchange Show

# Full Transcript

**Podcast:** The Financial Exchange Show

## Participants

- **Chuck Zahda** (Armstrong Advisory Group)
- **Paul Lane** (The Financial Exchange Network)
- **Tucker Silva** (The Financial Exchange Network)

## Transcript

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This is The Financial Exchange with Chuck Zahda and Paul Lane. Yeah, it's Chuck, it's Paul, and it's Tucker with you. And as we kick things off, we got stocks making a big run to the top side here with all your major U.S. indices firmly in the green,

which is nice to see when the cute little Russell 2000 can get up and follow the big brothers to wherever it is that they're going. I don't know. But in any case, the S&P 500 is up 88 points, about one and a quarter percent. The Dow is up 657 points, about 1.3 percent. NASDAQ Composite up 362 points, about 1.43 percent.

The fascinating thing, the Dow still has not recaptured a new all-time high from earlier in the year because of its lack of technology exposure. The other two major indices are at all-time highs right now, or hit them today. But the Dow, not there yet. Ten-year Treasury down 6.2 basis points, reversing some of the upward pressure on rates over the earlier part of the week.

Dollar index is down 0.53 percent to 97.79. Gold up 147.60 an ounce on that news to 47.16 and 10 cents. And crude oil down 7.39 a barrel on West Texas Intermediate to the 94.88.

This on the back of a report from Axios that the U.S. and Iran may be nearing a one-page memorandum of understanding to begin negotiating on things over the next 30 days or so. Again, whether this turns into something or not, I don't know. We've had a number of false starts over the last three to four weeks on this that the initial reporting seemed promising and nothing came of it. Maybe this is different. Maybe it's not.

I don't really know. We're going to see exactly what...

The AI Boom Is Starting to Look Dangerous

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
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The AI Boom Is Starting to Look Dangerous

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.