When hype replaces fundamentals, the edge is already gone
I’ve said this for a while, and it’s becoming harder to ignore:
ChatGPT didn’t just spark the AI bull market.
It may end up being the thing that exposes its excesses.
Not because AI isn’t real.
Not because the technology isn’t powerful.
But because the capital formation around it has started to look detached from reality.
Hype is how you raise $500 billion
Let’s start with something obvious that few people want to say out loud:
Yes — AI is hyped.
Of course it is.
You don’t get institutions to write nine-figure checks without a compelling story. Hype is the lubricant that moves capital at this scale.
The problem isn’t hype itself.
The problem is when hype becomes a substitute for fundamentals.
That’s where things start to look… fragile.
Subscribe to Alpha Premium to read the rest.
Become a paying subscriber of Alpha Premium to get access to this post and other subscriber-only content.
UpgradeA subscription gets you:
- Full Alpha Framework Portfolio Allocation
- Weekly Alpha Notes (what changed, what matters, what’s noise)
- Weekly Macro Updates
- Position sizing & conviction levels for every holding
- Before-it-prints setups I’m watching early
- Priority ticker breakdowns (member requests reviewed weekly)
- Charts
- Micro-cap Home Runs