Key Takeaways
- • Jordi Visser argues the AI bubble has not burst; he attributes recent market drawdowns to record hedge fund leverage and crowded long positions being unwound, drawing a comparison to LTCM-style episodes.
- • Visser points to signed AI supply agreements and Nvidia guidance as evidence of real underlying demand for AI infrastructure.
- • The risk he identifies sits in hedge fund leverage and positioning rather than in AI valuations themselves.
Summary
Jordi Visser contends that the AI bubble has not popped. In his account, the recent market stress stems from record hedge fund leverage and crowded long positions that are being unwound. He compares the resulting drawdowns to the Long-Term Capital Management episode, in which leveraged positioning amplified losses across markets.
Visser cites signed AI supply deals and Nvidia guidance as evidence that demand for AI-related products remains real. On this reading, the deterioration reflects forced selling by leveraged investors rather than a reassessment of the fundamental AI opportunity. The publisher summary frames the argument as a distinction between speculative excess in positioning and the underlying commercial activity supporting the sector.
Visser cites signed AI supply deals and Nvidia guidance as evidence that demand for AI-related products remains real. On this reading, the deterioration reflects forced selling by leveraged investors rather than a reassessment of the fundamental AI opportunity. The publisher summary frames the argument as a distinction between speculative excess in positioning and the underlying commercial activity supporting the sector.
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