00:00It's Benzinga bringing Wall Street to Main Street.
00:02NYU professor and tech commentator Scott Galloway warned that the artificial intelligence market
00:07is a bubble and said high-flying tech stocks like NVIDIA could fall by as much as 70%,
00:12according to Benzinga. Speaking on the Inside Economics podcast, Galloway questioned high
00:17expectations for AI companies and said the sector now accounts for about 40% of the S&P 500.
00:24He said companies must either cut jobs to justify valuations or face a market correction,
00:29which he expects will happen. He compared it to Amazon's 97% decline during the dot-com bust
00:35and said a 70% drop in NVIDIA would impact the broader market. Galloway said AI was like a
00:41corporate ozenthic, enabling companies to cut workforce costs while maintaining profit margins.
00:47He said executives use AI narratives to justify layoffs and mask over hiring and poor forecasting
00:53from the pandemic while appealing to investors. For all things money, visit Benzinga.com.
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