Devina Mehra On AI Boom: Real Growth Or Another Bubble Risk?

Devina Mehra examines whether the global AI boom resembles past technology bubbles such as the dot-com era. She highlights that the current rally is being driven by a very small group of large tech companies, raising concerns about concentration and sustainability. While new technologies may transform society, she cautions that not all companies involved will generate profitable returns. She explains that AI requires massive investments in data centers, infrastructure, and talent, yet it remains unclear whether these costs will yield meaningful long-term profitability. Drawing parallels with industries like automobiles and aviation, she notes that even transformative sectors can be poor investments. Her message: technology success does not automatically translate into investor success, and caution is warranted.