I do think the inflated valuations are in-fact existational threats to Microsoft and Google. Tech stocks are so over valued that they very well can go into a death spiral when investors no longer believe the company will grow exponentially. Its happened before, and will happen again. Thats why they are so desperate to hype AI. Thats the only illusion that have left to justify future growth.

I mean, the names will still be there, but you will have consolidation and buyouts and other changes of ownership. Some will continue as a shell of their former selves (like old school IBM), while others will just vaporise (Kodak). There’s not really a reliable mechanism for a companies valuation to shrink by several orders of magnitude and just cut back and continue as a stable smaller company.

Obviously, the people at the top will get government handouts to stay rich and it will be all our pensions that get cleaned out. Thats how this works. Cheer the bubble bursting, but only because the earlier the less harm for all of us. Ram won’t get cheaper either.