The article discusses the potential overvaluation of tech stocks due to the hype surrounding artificial intelligence (AI). According to Aswath Damodaran, a finance professor at New York University’s Stern School of Business, the current AI frenzy has created a “Magnificent 7” bubble, referring to the seven tech giants: Meta, Amazon, Microsoft, Nvidia, Alphabet, Apple, and Tesla. Damodaran warns that investors are overpaying for these stocks based on unrealistic expectations of AI’s impact on their businesses. He argues that while AI will create value, it will also destroy value in other areas, leading to a zero-sum game. The article highlights Damodaran’s concerns about the lack of transparency in AI valuations and the potential for a market correction if the hype fades. It also notes that some investors remain optimistic about the long-term potential of AI, despite the risks of a bubble.