Securities Lawyers Blog
In the recent Barron’s article discussing the surge of interest in artificial intelligence related stocks and investment products, my quote was intentionally grounded in restraint. The goal was not to dispute the importance of AI or minimize its transformative potential. It was to remind investors that markets do not reward themes. They reward execution, durability, and economics over time.
My quote emphasized that AI enthusiasm has outpaced fundamentals in many corners of the market. That observation is rooted in history, not cynicism. Every major technological shift generates waves of capital that move faster than business reality. Artificial intelligence is no exception. The presence of a powerful narrative does not eliminate the basic rules of valuation, competition, or capital allocation.
What concerned me, and what I sought to highlight in the article, is how easily the AI label can obscure risk. Companies with limited revenues, unclear business models, or marginal ties to actual AI deployment are often swept up alongside firms that are genuinely building infrastructure, platforms, or applications with long term relevance. When that happens, prices reflect momentum rather than substance. That is rarely a stable foundation for long term investors.