ilmscore | Prediction Details
"So essentially, Shahan, when I'm looking at AI today and AI stocks and how AI as a whole has sort of helped quant investing, uh I think it's made the research process a lot faster for us. But if you look at it from just from a pure stock perspective, I think they're going at some crazy valuations. So essentially um to justify those valuations that we are running at today, the earnings number have to be crazy, right? And I don't think so anyone in the right mind is able to give that earnings number. So as an investor, right? If I were to follow even a subjective investor like a Buffett's principles, um I would say that if I can't predict earnings, I'm not going to touch the stock because then there's no margin of safety, right? If you're entering at say like a 100 times or 200 times or even a 300 times earnings, what's the margin of safety that you have, right? You don't know because if you're wrong, if the industry changes, you could lose probably 70 80% of your wealth also. And we've seen that in the past to the tech boom. So, this could be a disruptor. This will be a disruptor. The AI boom is going to be there. But and and businesses are going to change because of this. We're seeing that today. But does that become a great investment? No, not always. you know it might be a very you can find a very boring industry and you can make a lot of money because it's available at a cheap price."
By Finance With Sharan | October 15, 2025 | Correct
From video
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Interpreted Prediction
While AI is a disruptive technology and will change businesses, AI stocks are currently trading at extremely high valuations. Without predictable earnings, these stocks offer no margin of safety and could lead to significant losses, similar to the tech boom.
AI Evaluation Notes
The prediction stated that AI stocks were overvalued and could lead to significant losses. While it's difficult to quantify 'significant losses' without specific stocks mentioned, major AI stocks have seen corrections but have not crashed by 70-80%. Therefore, the prediction is only somewhat accurate.

Prediction Details

Topic
AI Stock Performance

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