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Booms Precede Bubbles: Understanding the AI Expansion Phase

  • MyTimeEquityPE
  • Nov 10
  • 1 min read

The ongoing AI revolution has ignited both excitement and concern about an approaching bubble. At MyTimeEquity, we believe the evidence still points to an early boom phase—a period of innovation-led expansion rather than speculative excess.


Major U.S. technology firms—Microsoft, Google, Amazon, and Meta—are funding most AI capital expenditures through free cash flow, not debt, providing a strong foundation for sustainability. However, the growing web of cross‑investments (e.g., NVIDIA with its partners and AI labs like OpenAI and Anthropic) introduces interdependencies worth monitoring. While leverage and speculation are emerging in pockets, the broader market remains supported by earnings and productivity growth.


In every innovation cycle, booms precede bubbles. Based on current fundamentals and investment patterns, the AI sector still appears to be in its productive, capital‑formation stage rather than the euphoria phase.

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The AI Innovation Roadmap highlights our current inflection point—transitioning from Generative AI toward Agentic AI. The coming phase will enable systems that reason, decide, and act autonomously, unlocking exponential productivity gains across industries.


Beyond Agentic AI lies Physical AI and ultimately AGI—machines capable of human‑level learning and adaptability. Each stage will reshape how capital, labor, and data interact, driving new investment frontiers in infrastructure, automation, and intelligence.

 
 
 

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