Comment: The AI ​​price turbulence will continue – for a good reason

For years, investors in the AI-driven stock hype have been comforted by the fact that today's stock market stars such as Alphabet, Amazon, Meta, Microsoft and Oracle are making a lot of money. This means they can cover the high investments. That's the big difference to the internet-driven dot-com bubble at the turn of the millennium, when stars earned little to no money.

At that time, the US technology exchange Nasdaq collapsed by 50 percent and the DAX by 75 percent within three years when high expectations were not fulfilled. What remained was the Internet.

The reassuring difference between then and now remains true, and yet investors should not feel too confident. Building data centers and further developing artificial intelligence (AI) technologies are expensive. The five companies mentioned above alone are expected to invest just under a trillion dollars this year and probably over a trillion dollars in 2027.

By 2025, current income would provide almost all of the money for investments. But the large AI companies are now among the world's largest bond issuers, apart from the highly indebted states. In order to finance the constantly increasing investments, companies borrow money from small and professional investors.