![Doubts over AI boom taking root among some experts](https://cdn.magzter.com/1617717947/1721426295/articles/zTfEX92MY1721431442961/DOUBTS-OVER-AI-BOOM-TAKING-ROOT-AMONG-SOME-EXPERTS.jpg)
Over three decades on Wall Street, Mr Jim Covello has learnt how painful it can be to bet against an inflating tech stock bubble. The market has a way of minting riches, month month after month, even after it is clear the latest breakthroughs are not playing out quite as expected.
It happened with dot.com companies in the late 1990s and, more recently, with cryptocurrencies. And Mr Covello, the head of equity research at Goldman Sachs, says it will likely happen with artificial intelligence (AI), too, making it dangerous, if not outright foolish, to start wagering against the likes of Nvidia.
And yet, he has no doubt that the reckoning is coming. It might not be in 2024 or even the year after, for that matter, but at some point, he says, it is happening.
As he sees it, the hundreds of billions of dollars that companies are ploughing into AI will not set off the next economic revolution - or even rival the benefits of the smartphone and the internet. And when that becomes clear, all the stocks that have surged on the back of its promise will come sliding down, too.
"Most technology transitions in history, particularly the ones that have been transformational, have seen us replace very expensive solutions with very cheap solutions," said Mr Covello. "Potentially replacing jobs with tremendously costly technology is basically the polar opposite."
Mr Covello is emerging as a leader of a small but growing cohort of market watchers who are casting doubt on a crucial tenet of the rally that has added nearly US$16 trillion (S$21.5 trillion) to the S&P 500 since late 2022: the idea that the dazzling power of large language models will usher in the next great stage of capitalism, one where corporate profits will boom as more and more work is handed over to intelligent machines, boosting efficiencies and accelerating growth.
There are plenty of believers.
Denne historien er fra July 20, 2024-utgaven av The Straits Times.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra July 20, 2024-utgaven av The Straits Times.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
![Former players 'worried' about 'keepers situation](https://reseuro.magzter.com/100x125/articles/24723/1821529/2cgofSKXmAtLo71DECJsys/FORMER-PLAYERS-WORRIED-ABOUT-KEEPERS-SITUATION.jpg)
Former players 'worried' about 'keepers situation
Former national football custodians Lionel Lewis and Yakob Hashim have expressed concern over the future of goalkeeping in the country, describing the situation as \"worrying\" and calling for urgent measures to discover and develop new talents for the position.
![ONLY WAN NO. 1 FOR THE LIONS](https://reseuro.magzter.com/100x125/articles/24723/1821529/3ykfDAYspcTVmP1P4Husys/ONLY-WAN-NO-1-FOR-THE-LIONS.jpg)
ONLY WAN NO. 1 FOR THE LIONS
With first-choice goalkeeper Hassan retired, Izwan and Syazwan are vying for his spot
Regrets fuel Hong's 2nd South Korea stint
South Korea coach Hong Myung-bo returns to the international fray on Sept 5, aiming to erase past disappointments and secure a winning start to the third phase of Asia's World Cup qualifiers against Palestine.
![Dutch flavour in Indonesia's World Cup quest](https://reseuro.magzter.com/100x125/articles/24723/1821529/Tgk994ZPiCDuOtGHRopsys/DUTCH-FLAVOUR-IN-INDONESIAS-WORLD-CUP-QUEST.jpg)
Dutch flavour in Indonesia's World Cup quest
Indonesia's challenge for a first World Cup appearance in almost 90 years takes on a distinctly Dutch flavour when Shin Tae-yong's side face Saudi Arabia on Sept 5, hoping to ignite dreams of a long-awaited return to the game's greatest stage.
Leicester win appeal over Premier League's PSR jurisdiction
Leicester City have won an appeal against a decision that could have led to a points deduction for an alleged breach of English Premier League's Profitability and Sustainability Rules (PSR), the club said on Sept 3.
![School sports Teamwork key for Rafflesians at chess meet](https://reseuro.magzter.com/100x125/articles/24723/1821529/CYSyKDi5cSQZJM5gew5sys/SCHOOL-SPORTS-TEAMWORK-KEY-FOR-RAFFLESIANS-AT-CHESS-MEET.jpg)
School sports Teamwork key for Rafflesians at chess meet
Raffles Girls' School (RGS) Secondary 4 student Bernadette Kong capped off her final year with a perfect four out of four wins on Sept 4, when she helped the team claim the secondary girls' title at the National Inter-School Team Chess Championships.
![WORK ETHIC IS NG'S STRONG SUIT](https://reseuro.magzter.com/100x125/articles/24723/1821529/ZFQnkuV7ywBAv7tC24asys/WORK-ETHIC-IS-NGS-STRONG-SUIT.jpg)
WORK ETHIC IS NG'S STRONG SUIT
Cardiff defender dreams of donning Lions jersey; playing in Premier League
![SABALENKA IN ENEMY TERRITORY AGAIN](https://reseuro.magzter.com/100x125/articles/24723/1821529/Jn6A6VQL7uqV9Ndc4misys/SABALENKA-IN-ENEMY-TERRITORY-AGAIN.jpg)
SABALENKA IN ENEMY TERRITORY AGAIN
Belarusian jokes she has to buy drinks to get support against American Navarro
![Furyk sticks to rankings for Presidents Cup picks](https://reseuro.magzter.com/100x125/articles/24723/1821529/aa1aUPPcdlSUp0cht5zsys/FURYK-STICKS-TO-RANKINGS-FOR-PRESIDENTS-CUP-PICKS.jpg)
Furyk sticks to rankings for Presidents Cup picks
United States captain Jim Furyk followed the form book on Sept 3 with his final wildcard selections for golf's Presidents Cup, rounding out his team based solely on team rankings.
![Sleepless Zheng eyes 'prime time' Asian slots](https://reseuro.magzter.com/100x125/articles/24723/1821529/p57NEl1osDa2YZl6dTzsys/SLEEPLESS-ZHENG-EYES-PRIME-TIME-ASIAN-SLOTS.jpg)
Sleepless Zheng eyes 'prime time' Asian slots
Olympic champion Zheng Qinwen said that her tame US Open quarter-final exit was caused by a sleepless night following the record-setting late finish to her previous match, but predicted that she will be \"prime time\" when she gets back to China.