AI Stock Valuation Bubble May Be Bursting as $SPCX Falls 46% From Peak

According to PANews, economist Peter Schiff warned on July 21 that AI-related stocks are weakening, with $SPCX trading below $121—down approximately 11% from its IPO price and over 46% from its peak. As low-cost AI models proliferate, investors should reassess high growth expectations previously attached to AI companies. Schiff emphasized that the AI technology itself is not a bubble, but rather the market valuation hype surrounding AI is cooling. The emergence of competing low-cost models like Moonshot AI's Kimi K3 is adding further pressure on U.S. AI company valuations, with the market now distinguishing between a fundamental AI technology sector and an overvalued AI stock market.
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