Investors are assigning a market value of over $3 trillion to the artificial-intelligence industry. Of the more than 3,000 stocks comprising the Nasdaq Composite Index, the aggregate fair valuation is 11,101.

The index closed at 13,018, meaning stocks are overvalued by 1,917 points or $3.1 trillion in market capitalization.

At its peak, investor avidity for artificial intelligence propelled the Nasdaq Composite to 14,447, a market capitalization of about $5.5 trillion to the AI complex. In the wake of geopolitical tensions, investors have since trimmed their positions. However, plenty of froth remains in the market to be mopped up.

Try this exercise: Run a comparison chart on your favorite investment website for the DOW, S&P and NASDAQ for the past 2 years…

Material prepared by Sherman Portfolios, LLC.

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