The successful investor Jim Mellon is always a voice that is worth listening to. Recently appeared Podcast Master Investorwhere he found some intriguing points about the stock exchange. Let’s take a look at several of them.

You have a bubble

The first thing to mention is that Mellon does not buy noise around the artificial intelligence campaign (AI). He thinks that AI boom is basically a bubble that has pop saying that “A great bust … It will inevitably appear in artificial intelligence in a relatively near future. We don’t know when, but for sure, there will be a bust“.

There are also bears on wonderful 7 actions, indicating that basically every financial institution and many retail investors already have them. They have a immense part S&P 500. Who, asks, are “Marginal additional buyers“When are all of the owners of stocks?

In my opinion it was true six months ago. However, actions Nvidia AND Microsoft increased by 47% and 30%, respectively Alphabet Yesterday he jumped 9% (3 September) to reach a record level. There is apparently a sufficient number of buyers to maintain cash flow to these names.

However, I feel that he is right when he says that most cloud giants do the same. They all build AI data centers, packed mainly with NVIDIA systems to pump similar AI models. Mellon compares it to railways in the 1850s, where most shareholders in railway companies did not do well.

It seems to me that there is a risk of “dresser” for AI start-ups, which means that all produce very similar products. And that’s why I think that the latest valuations of OpenAI and Anthropic – $ 500 billion and USD 183 billion, respectively – look crazy. In my opinion, this part of the AI ​​market is a bubble waiting for pop.

However, I don’t think like like Amazon (Nasdaq: Amzn) and the alphabet are at crazy levels. They already have very high profits to support their valuations.

Robotics revolution

In the episode of Podcast Mellon said he was Uber-Bullish on Humanoid Robotics: “Until 2050, we will have more robots than people, many others and they will do everything. “

At first glance, this world seems to match Nvidia for 25 years. Humanoids need a huge computing force for vision, movement and decision making. Billions of robots would mean the growing demand for the NVIDIA AI Chips/Robotics platforms, unless Chinese competition is increasing.

However, I think Amazon has a huge benefit of this revolution. Thanks to over 1m, robotizora robotis employees almost match their staff about 1.5 million. Millions more advanced bots would mean faster selection, packaging and shipping, with lower work costs.

Meanwhile, autonomous vans and robots from the last Mili-go, in which Amazon is investing strongly-to reduce costs even more. The end result may be noticeably higher profit margins.

Because, as Mellon says, robots “They are able to work 24 hours a day, do not pay national insurance, not yet, although they can do it in the future, not complain and are not united. “

Of course, Amazon is more than just work. It sits in the closest uncertainty with tariffs, which can lead to higher prices and slowing down its basic e-commerce operation.

But by trading a reasonable price forward price to profit of 32, I think that shares are worth considering for long -term investors.