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Odd Lots: Henry Blodget on the Problem for OpenAI (Podcast)

A year ago, all of the talk was about how the big AI companies were wildly overvalued. Everyone was calling it a bubble. Fast forward to now, and a dominant idea in the markets is that AI is so powerful that all kinds of legacy businesses — particularly software — could go to zero. So where does the truth lie? And what now for AI valuations? On this episode, recorded live at the On Air podcast festival in Brooklyn on February 25, we catch up again with Henry Blodget, the former Wall Street analy

Mar 07, 2026 &03000707202631; 09:00 UTC feeds.bloomberg.com Trending 2/5

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Neutral impact

Sentiment score: -5/100

Moderate impact Medium-term (weeks)

WHAT THIS MEANS

Henry Blodget discusses the shifting narrative around AI valuations, moving from bubble concerns a year ago to current market fears that AI could render legacy software businesses obsolete. The podcast explores the tension between AI's transformative potential and realistic valuation expectations for AI companies.

AI CONFIDENCE

65% High

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

⇅

S&P 500

^GSPCIndex

High volatility expected

Broad market exposure to AI-related valuations and software sector concerns

⇅

Microsoft

MSFTStock

High volatility expected

Major AI investor and software company facing disruption narrative

⇅

Alphabet (Google)

GOOGLStock

High volatility expected

Dominant AI player with legacy business exposure to disruption risk

↑

NVIDIA

NVDAStock

Expected to rise

AI infrastructure beneficiary regardless of application valuations

PRICE HISTORY

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⚡ SUGGESTED ACTION

Monitor AI-related software stocks for valuation compression; consider hedging long positions in traditional software companies while maintaining exposure to AI infrastructure plays (semiconductors, cloud). Wait for clearer evidence of AI monetization before aggressive positioning.

KEY SIGNALS

AI valuation bubble concerns persist despite market enthusiasmLegacy software businesses face existential disruption risk from AIMarket sentiment swinging between extremes on AI impactDisconnect between AI company valuations and fundamental earnings

SECTORS INVOLVED

TechnologySoftwareArtificial IntelligenceCloud Computing

Analysis generated on Mar 09, 2026 at 18:09 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by Bloomberg Markets. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

Odd Lots: Henry Blodget on the Problem for OpenAI (Podcast)

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