in ChatGPT's parent company, OpenAI. Other companies with AI exposure, including Tesla and Meta Platforms, also notched huge gains in the first half.
Grantham, who called the dot-com crash in 2000 and the housing bubble's implosion in 2008, told the WSJ that the AI frenzy could fuel the wider stock market for another couple of quarters. But he warned it wouldn't stop the superbubble from eventually popping. Helast year that the S&P 500 might bottom out below 2,500 points — a brutal 44% drop from its current level.
If Grantham's forecast is correct, GMO stands to profit. It has placed bets against several high-flying growth stocks, and loaded up on deep-value stocks that it expects to shine in the years ahead. The downturn will be a"wonderful, generational opportunity to make money," Ben Inker, the firm's co-head of asset allocation, told the WSJ.