Caroline Woods: So we're talking AI and I want to kick things off with a question that we have been hearing more and more and want you to weigh in on it. Is AI a bubble? What do you think? Cameron Dawson:

With all the AI bubble headlines out there, it’s easy to conclude that the great bull run will end in tears and perhaps irrecoverable losses for those who’ve chased the hottest AI names in the market.

The largest companies have seen their weighting in the S&P 500 rise more quickly than their share of total earnings

It's really a different thing,' Jerome Powell told reporters this week. However, the Federal Reserve is closely watching the impact of AI on hiring following high-profile tech layoffs.

"Absolutely, there are a ton of these investments that will be dead ends," Bill Gates said on "Squawk Box."

Federal Reserve Chair Jerome Powell said Wednesday he did not believe the massive growth in artificial intelligence (AI) investment and spending was a bubble. At a press conference following the

Nvidia is at the core of the AI revolution with its high-tech computer chips in high demand. They are the "brains" that power AI. AI will always need high-powered chips, so it may seem reasonable to think that Nvidia can weather the AI bubble popping.

Even with valuations elevated, the old maxim of "don't fight the Fed" may prove to be good advice in the near term.

Utilities are investing in pricey grid upgrades as tech companies shrug off concerns about building too many data centers.

The same thing happened in the dot-com bubble 25 years ago, and it has raised investor concern that it could be happening again. However, that ignores a key point: There are other companies out there besides OpenAI that are spending real money on AI chips.

Alphabet, Amazon, and Meta raised their capital expenditure forecasts in the tech giants' most recent earnings reports.

Either the bubble bursts and wipes out a huge sector of the economy, or AI replaces human workers across industries.