At Italian Tech Week in Turin, Amazon (AMZN) founder Jeff Bezos said that artificial intelligence is currently in an “industrial bubble.” A “bubble” typically refers to a time when excitement drives up stock prices far beyond a company’s actual worth, something that famously happened during the dot-com crash of 2000. When Exor (EXXRF) CEO John Elkann asked if AI is experiencing a similar moment, Bezos said yes. He explained that during bubbles, people often become too excited and invest heavily in both good and bad ideas without enough caution.
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This means that companies with just a few employees can raise billions of dollars, even if their business plans don’t make much sense. While Bezos didn’t mention any specific names, he described this behavior as “very unusual.” Still, he made it clear that AI itself is not hype. Instead, he believes the technology is real and will have a significant impact on every industry. Even though many companies may fail in the process, Bezos said that industrial bubbles often help society in the long run.
Indeed, he compared it to the biotech bubble of the 1990s, which saw many startups collapse but also produced major advances in life-saving drugs. Once the hype dies down and only the strongest companies are left, society benefits. Bezos believes the same will happen with AI. Interestingly, others, like OpenAI CEO Sam Altman and Goldman Sachs (GS) CEO David Solomon, have made similar comments. Specifically, Solomon added that while no one knows exactly when, a market pullback is bound to happen sooner or later.
What Is the Price Target for AMZN Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Amazon stock based on 44 Buys assigned in the past three months. Furthermore, the average AMZN stock price target of $266.66 per share implies 19.7% upside potential from current levels.
