[Analysis: The Burst of the Current Memory Chip Stock Bubble Has Not Triggered Systemic Shocks, S&P 500 Down Only 1.6% from Historical Highs] BlockBeats News, August 2, according to The Wall Street Journal, the U.S. market has frequently experienced bubbles centered around specific industries and themes in recent years, but the bursting of these localized bubbles has typically failed to drag down the broader stock market. The current memory chip bubble expanded rapidly and burst within approximately four months, accompanied by severe volatility and a hedge fund falling into crisis. However, the S&P 500 index is only 1.6% below its historical high, and the equal-weighted S&P 500 index even hit a new high last week. The pullback in AI-related stocks has also been almost entirely offset by gains in other sectors. Over the past decade, the U.S. market has successively experienced bubbles in 3D printing, Chinese concept stocks, low-volatility products, SPACs, clean energy, cannabis, space, crypto assets, and AI concept stocks. Strategy has fallen 83% from its peak, Trump Media's stock price has dropped 89%, and SK Hynix had declined by as much as 55% before rebounding last Friday. Loose monetary policies, speculative demand, and expectations for new technologies have collectively fueled these bubbles, with margin debt and leveraged ETFs further amplifying volatility in recent years. These localized bubbles have not caused severe economic shocks, primarily because most were not financed by large amounts of debt. After the bubbles burst, losses were mainly borne by investors, and the banking system did not suffer significant impacts. Macroeconomic strategist Russell Napier stated that the banking system remains healthy, which ensures that the market always has more credit available to fuel the next bubble. However, AI investments are pushing the market into a more dangerous zone. Data center spending over the next four years is expected to reach $7 trillion. If the productivity gains brought by AI are insufficient to justify such a scale of investment, capital misallocation could severely harm the economy. As AI infrastructure increasingly relies on debt financing, if broader AI investments ultimately prove to be a bubble, its collapse could impact the financial system, making it difficult for the overall market to remain unscathed. [Original Link]