Like many investors, I’ve watched the stock market’s remarkable recovery since the 2022 downturn—followed by an extraordinary surge fueled by artificial intelligence, quantum computing, and a mix of broader economic forces. While I am a firm believer in the transformative potential of automation, AI, robotics, and quantum technologies, I can’t help but ask: is this rapid rise grounded in sound investing principles, or are we witnessing a modern replay of the dot-com bubble?
Key Observations:
Explosive valuations: AI and quantum computing stocks have skyrocketed—some climbing hundreds of percent, such as CoreWeave, Palantir, SoundHound, and AppLovin; others, including Rigetti and Quantum Computing Inc. (QUBT), have surged by thousands of percent.
Exceeding expectations: While a few companies have outperformed analyst projections on revenue and earnings, many have vastly surpassed even the most optimistic stock price targets.
Weak fundamentals: A large portion of these high-flying stocks remain unprofitable, with analysts forecasting continued losses for years to come.
Questionable payback: The massive global buildout of AI data centers—expected to cost hundreds of billions, perhaps even trillions—comes with uncertain financial returns.
Unrealized potential: Studies indicate that the true, measurable benefits of AI and quantum technologies may not be fully realized for several years, if not a decade.
Interconnected risk: Increased cross-investment among AI companies, while spurring innovation, also creates a web of financial dependencies that could prove fragile.
Speculative sentiment: Public enthusiasm has drawn in many new investors, including those with limited financial experience, leading some market observers to warn of bubble-like conditions with valuations reminiscent of previous market peaks.
This commentary is not financial advice. It serves as a reminder of the inherent risks that accompany exuberant markets. As my late father wisely said, “One stock goes up, one goes down, and another stays in the middle—and in the end, you have nothing.”
A Jewish Lens for Wisdom and Restraint
In Judaism, wealth itself is not condemned—what matters is how we pursue and use it. The Talmud teaches, “Who is wise? One who sees the consequences of his actions.” (Tamid 32a). That timeless insight applies as much to investing as to life. In moments of market euphoria, it’s easy to be swept up by excitement and lose sight of the long view, yet the Torah reminds us to act with discernment, humility, and balance.
King Solomon, the wisest of men, cautioned that “Wealth hastily gained will dwindle, but one who gathers little by little will increase it.” (Proverbs 13:11). The current frenzy around AI and quantum technologies offers a powerful test of that principle—whether we can stay grounded amid promises of overnight fortune.
AI, Technology, and the Vision of Redemption
Jewish thought does not fear technological progress; rather, it seeks to channel it toward holiness and human betterment. The Lubavitcher Rebbe, among others, taught that every new discovery in science and technology is meant to help humanity serve G-d more effectively—to reveal the Divine wisdom hidden within creation. From that perspective, the rise of AI and quantum computing may be part of a larger unfolding toward the era of Mashiach, when, as the prophet Isaiah foretold, “The earth will be filled with the knowledge of G-d as the waters cover the sea.” (Isaiah 11:9)
AI’s capacity to gather, process, and share vast knowledge can be viewed as a glimpse of that future—where information flows freely, boundaries of understanding dissolve, and human potential expands. Yet Judaism cautions that wisdom without morality can be dangerous. The Torah teaches that true knowledge must be anchored in yirat shamayim—a reverence for G-d and ethical purpose—lest our creations master us instead of serving us.
As with all human progress, the moral question is not can we, but should we—and to what end? In the times of Mashiach, technology will not vanish; it will be elevated—increasingly used to heal, to build, to connect, and to bring greater awareness of the Divine. The challenge of our age is to begin living that vision now: to ensure that our pursuit of innovation reflects our higher calling, not our greed or pride.
As far as the stock market is concerned, while many have profited handsomely in this tech-driven rally, greed or no greed—the potential for sharp losses remains real.No one can predict the future of the market; only time and prudent judgment will determine which investments will rise or fall.
As my wife often reminds me when I speculate about the markets, “You’re not a prophet.” And perhaps that’s the ultimate truth—only G-d knows.
Andy Blumenthal is a dynamic, award-winning leader who writes frequently about Jewish life, culture, and security. All opinions are his own.
