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Aswath Damodaran: The AI Boom Is Headed For A Reckoning, Sonic AI
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Aswath Damodaran: The AI Boom Is Headed For A Reckoning
ProfG Markets
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May 15, 2026
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59:30
Interview
Aswath Damodaran: The AI Boom Is Headed For A Reckoning
From
ProfG Markets
Prof G
(Host, ProfG Markets)
•
Ed Elson
(Business, technology, and geopolitics analyst…)
•
Scott Galloway
(Professor, NYU)
•
Claire Miller
(producer)
•
Aswath Damodaran
(Professor of Finance, NYU Stern School of…)
•
Aswath Damodaran
(Professor of Finance, NYU Stern School of…)
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Executive Summary
The current AI boom is driving more widespread capital expenditure than the dot-com era, suggesting a future correction could have a broader and more severe macroeconomic impact.
Upcoming IPOs for SpaceX, Anthropic, and OpenAI are expected to have a combined market cap exceeding all dot-com era IPOs, but their massive valuations face scrutiny due to unproven business models, high cash burn, and corporate governance issues.
Markets are showing surprising resilience to shocks, but are underpricing systemic risks, with geopolitical conflict being the most immediate threat, while a potential AI disappointment is a longer-term concern.
The semiconductor sector has surged to 17% of the S&P 500, driven by intense AI-related demand that is now benefiting a wider range of companies beyond just NVIDIA, including Intel.
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Processed May 15, 2026
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