AI - Yardeni QuickTakes

Will The US Economy Remain Resilient Despite AI Derangement Syndrome?

Feb 26, 2026 4 min read paid

If AI continues to disrupt, if not destroy, more and more business models, won't that cause a recession? It might if it triggers lots of white-collar layoffs, which in turn lead to blue-collar job losses (chart). Alternatively, it might cause a credit crunch in the private credit markets. UBS Group AG has raised its private credit default forecast, with its strategists warning that losses could reach as high

Ed Yardeni
Toby Hearst

Update On AI Derangement Syndrome & Its Consequences

Feb 25, 2026 3 min read paid

Last year's impressive stock market rally, which began on April 9 (when POTUS postponed his Liberation Day tariffs), was fueled by AI Optimism. It turned into AI Fatigue late last year and, in recent weeks, into AI Fear. Now it's AI Derangement Syndrome. For a while, AI was widely thought of as a productivity-enhancing tool. Now the worry is that it has turned into a Terminator

Ed Yardeni

Is AI Frankenstein?

Feb 23, 2026 3 min read paid

The people who've created large language models (LLMs) to power artificial intelligence (AI) are now using them to code better LLMs. If LLMs are now so good at coding that they can create their own better versions, who needs coders anymore? Are the only jobs left in the software industry the ones for LLM prompters? In 5-10 short prompts, they have to tell the LLM what new software

Ed Yardeni

MARKET CALL: AI Is Speed Skating On Ice

Feb 15, 2026 4 min read paid

Technological innovations tend to be disruptive and dynamic. That's especially true with AI, which has the potential to disrupt itself, as evidenced by its ability to write software code, including AI code. So it can feed on itself, with the new code eating the old, making it obsolete very quickly. The pace of obsolescence seems to be moving at warp speed for both AI hardware and software, particularly

Ed Yardeni

CODE RED: Altman's Existential Crisis & Trump's Affordability Crisis

Dec 4, 2025 3 min read paid

The stock market has lost its mojo recently. The S&P 500 has been hovering around 6800 since late November. It did recover nicely from a November 20 low of 6538. But the rebound since then has failed to lift the index above the October 29 record high of 6890. It may break out above that high after the FOMC’s December 9-10 meeting if the Fed delivers the

Ed Yardeni

Data-Dependent

Nov 19, 2025 3 min read

What do Nvidia and the Fed have in common? They are both data-dependent. Nvidia's GPUs are the latest stage of the Digital Revolution, which started during the mid-1960s with IBM's mainframes. The Digital Revolution is all about processing ever more data, faster and faster, and at ever lower cost. In this context, GPUs are just the latest development in the Digital Revolution. The next big, new

Ed Yardeni

DEEP DIVE: AI's Low-Tech Problem

Nov 12, 2025 5 min read

With lofty valuations in AI-related stocks, it's understandable that investors are on edge about anything that might go wrong. Recently, concerns have centered on the ability to bring new AI data centers online at the volume AI providers require. While funding for construction is flowing, a lack of electricity and permitting — two very low-tech problems — might be the Achilles' heel of this otherwise high-tech industry. Demand for

Jackie Doherty
Ed Yardeni

Bad Day For the Big Short, Thanks To Dip Buyers

Nov 10, 2025 2 min read paid

Today was not a good day to be short AI stocks like Nvidia (up 5.8%) and Palantir (8.8%). They both rebounded dramatically, along with other AI stocks following last week's selloff (chart). Investors and traders bought the dip again. It's hard to short stocks in a bull market. The Magnificent-7 rose 2.8% today after falling 3.4% last week. The AI trade remains

Ed Yardeni

MARKET CALL: From AI Zen To AI Jitters

Nov 9, 2025 3 min read

The S&P 500 peaked at a record high of 6890.59 on October 28 (chart). It is down 2.4% since then. It retested its 50-day moving average on Friday, falling slightly below it around noon. It then closed higher on the day on hopes that a compromise proposal from the Democrats might end the government shutdown. Negotiations are reportedly happening, but they remain tense and far from

Ed Yardeni

MARKET CALL: Super-Duper Earnings

Nov 1, 2025 3 min read

S&P 500 earnings per share continue to beat expectations. Q3 earnings per share are on track to rise to a new record high. They are driving the S&P 500 stock price index to new record highs. The Magnificent-7 are leading the way higher on both fronts. As a result, the S&P 500 market-weight index continues to outperform the equal-weight index (chart). On Friday, Amazon

Ed Yardeni

Just Another AI (Mania?) Day

Oct 27, 2025 3 min read paid

Today was just another day in the stock market. The S&P 500 rose to another record high of 6875.16. Also closing at record highs were the Nasdaq, the DJIA, and the Russell 2000. Been there, done it! More record highs are likely when the Fed cuts the federal funds rate by 25bps on Wednesday. On Thursday, President Donald Trump and Chinese President Xi Jinping are expected to

Ed Yardeni

Data Centers: Too Much of a Good Thing?

Oct 8, 2025 5 min read

The lure of riches and tight capacity today has money flooding into the construction of artificial intelligence (AI) data centers. Data center construction—just the cost of building the building—has increased to an annual rate of $43.0 billion, up 30% y/y and 322% higher than $10.2 billion four years ago (chart). Add in the costs of chips and servers, and you’re talking about real money.

Jackie Doherty
Ed Yardeni

AI

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