The David Lin Report · Thursday, July 16, 2026
Kai Hoffmann expressed concern that a potential bubble burst in the AI trade could negatively impact commodities, similar to how tech stock downturns affect copper. He noted that while AI is revolutionary, its job displacement impact and inflationary effects are still being debated, and the market is currently nervous about tech valuations.
“Let's suppose not saying this will happen, but one of the concerns from investors is the roll over in the AI trade. If the bubble just burst later this year, if stocks do come back from their valuations, what happens to commodities? If anything that trades all alongside those stocks will be impacted, do you think besides copper, or is that the only thing?”
“No, I would agree. So recession risk is is real, of course. And the AI trade, we all know we're in bubble territory. We're really high. Although like there's still growth happening. Like Samsung reported numbers today and they were fantastic. But they were warning a little bit about capex. And capex spend. And that's what put a damper on things and the stocks sold off 6, 7%. And it's pulled the main market down with it as well, right? That's that's the fear.”
“The question is though, AI is revolutionary. Like how long does it take to implement it? How long does it take to create or lose jobs? Is it inflationary or deflationary? Those are topics that are being discussed right now because job losses were we have the banks reporting soon. Like how quickly will AI replace their the workforce? And I think it's slower than perhaps a lot of people think.”