Big Tech Stock Crash, AI Bubble Theory, and Crypto Hopes

- Nasdaq & QQQ: Down by 3.6%, M7 stock crash (Alphabet -5.0%, Amazon -3.0%, Apple -2.9%, Meta -5.6%, Microsoft -3.6%, NVIDIA -6.8%, Tesla -12.3%)

- After Sequoia raised concerns about an AI bubble, fear of an AI Big Tech bubble emerged, coinciding with earnings season. https://sequoiacap.com/article/ais-600b-question/

- The core of the AI bubble theory is that while AI is the future, it is not immediately realizable. Current excessive CAPEX investments (e.g., NVIDIA chips) are not matched by high AI revenues 

- Will the liquidity that was focused on AI now flow into crypto? If Trump announces at this week's Bitcoin conference that he plans to incorporate Bitcoin into the US reserve assets and gets elected, it's possible

- However, this scenario does not apply to most alts. Most altcoins have a lower risk/return profile compared to M7 stocks imo. This is also true for Ethereum.