Re:The AI sell-off compared to well-known stock market crashes
by lelanthran on Saturday November 07, 2026 @04:43AM
(#50403085)
> The main difference being hardware companies are making huge amounts of money and cannot keep up with production due to excess of demand compared to supply.
You're describing exactly what happened during the dot-com crash and calling it different. Sun, Cisco, etc literally could not keep up with demand pre-crash, and yet they still tanked (Sun tanked enough to go under, Cisco took another 17 years to recover).
I mean, you're calling it a main difference, but describing exactly the same thing.
Re:The AI sell-off compared to well-known stock market crashes
by gizajob on Saturday November 07, 2026 @05:07AM
(#50403182)
You’re describing different hardware with drastically different users and use cases calling it exactly the same.
I don’t need a rack of Cisco routers on my desk. I’d happily take a Sun workstation loaded with GPUs though.
These assets aren’t going to get sold for pennies on the dollar. Too many people would be interested in them and they’ll get bid back up to 90 cents on the dollar.
We’re currently in a situation similar to the dot com crash but one that has enough differences for one to not apply the logic of that crash to it. The main difference being hardware companies are making huge amounts of money and cannot keep up with production due to excess of demand compared to supply. Their only approach in your crash scenario would that they would drop prices, but that will lead to yet more demand and prices rising.
I’d happily heat my house on a rack full of GPUs and memory and use all the AI capacity that came with it. But there’s no way hardware prices are going to also crash to allow me to do that.