Damodaran warns AI shakeout will crush smaller AI stocks
On CNBC’s Closing Bell, NYU finance professor Aswath Damodaran cautioned that the next AI shakeout will hit smaller, less‑capitalized AI firms hardest. He says the big ‘Magnificent Seven’ have cash and balance‑sheet strength, but the flood of overvalued niche players faces a painful correction as the market reprices AI hype.