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In 1908, the American automobile business looked like it was eating itself alive.
More than 240 companies were building cars that year, and dealers could not tell one from the next. Money poured in, then vanished in a season. Buicks and Oldsmobiles piled up in showrooms nobody could afford to rent. The panic of 1907 had just rattled every bank in the country, and the newspapers were calling the automobile a fad for rich men that regular families would never buy in bulk. Investors who had ridden the boom for two or three good years watched their shares get cut in half and started asking whether the whole thing was a mirage.
Within two decades, the automobile industry built the middle class, paved the country, and created some of the largest fortunes in American history. The demand never stopped growing. What stopped, again and again, was the market’s patience for waiting to see it confirmed.
I am telling you this because I think you are experiencing the same thing right now in AI infrastructure stocks, and I think most investors are about to make the same mistake those 1908 skeptics made.
