The No-AGI Burst: The Withering Black Swan

            Executive Summary: We are not witnessing an AI bubble. We are not experiencing a quantum computing bubble. We are trapped in an AGI bubble—a speculative mania built on the unproven assumption that Artificial General Intelligence is achievable within investment horizons. This report examines the catastrophic repricing awaiting markets if AGI remains science fiction for another century.
        

I. The AGI Delusion: Wishful Thinking on Steroids

Artificial General Intelligence has become the technology sector's equivalent of cryogenic immortality—a seductive promise that captivates imaginations and opens wallets, yet remains perpetually just beyond reach. Today's market valuations are not pricing in incremental AI improvements or practical quantum applications. They are pricing in the singularity itself.

The market has made a fatal assumption: that silicon computing or quantum physics will inevitably overcome the human mind. Yet nobody is betting on humans anymore. This collective delusion has created valuation distortions unprecedented in financial history, dwarfing even the dot-com bubble's excesses by orders of magnitude.

II. Quantum Computing: The Emperor's Invisible Qubits

Four pure-play quantum computing stocks have become the poster children for AGI-driven speculation, their valuations untethered from any semblance of business fundamentals:

Company	Ticker	Market Cap	Annual Revenue	P/S Ratio	YTD Gain
Quantum Computing Inc.	QUBT	$4.8B	$0.26M	18,550x	+3,150%
Rigetti Computing	RGTI	$15.3B	$8.2M	1,641x	+5,940%
IonQ Inc.	IONQ	$25.5B	$52M	303x	+712%
D-Wave Quantum	QBTS	$10.5B	$8.15M	100x	+345%

Combined reality check: These four companies command $55.6 billion in market capitalization while generating a collective $68.6 million in annual revenue. Their combined valuation exceeds General Motors ($47B market cap) while producing 0.01% of GM's revenue.

HISTORICAL CONTEXT: During the dot-com peak, high-flying internet stocks topped out at P/S ratios of 30-40x. Quantum Computing Inc.'s 18,550x ratio is 480 TIMES HIGHER than peak bubble valuations from 2000.

The Quantum Disconnect

These companies operate at staggering quarterly losses—IonQ lost $176 million, Rigetti burned $39.7 million—with profitability timelines extending into the 2030s under best-case scenarios. Yet investors continue bidding up shares on the thesis that quantum breakthroughs are essential for AGI development.

The market is pricing in not just successful quantum computing, but quantum computing enabling AGI, which itself transforms civilization. This is speculation stacked upon speculation, compounded by magical thinking.

III. Pure-Play AI: OpenAI, Anthropic, and the Valuation Tower

While quantum stocks trade at incomprehensible multiples, pure-play AI companies command equally breathtaking valuations premised on their proximity to AGI:

Company	Valuation	Annual Revenue	P/S Ratio
OpenAI	$500B	$13B	38x
Anthropic	$183B	$5B	37x
Perplexity AI	$20B	$200M	100x

Unlike quantum pure-plays, these companies generate substantial revenue and demonstrate real product-market fit. Yet their valuations embed aggressive assumptions about achieving AGI within investment time horizons—typically 5-10 years. OpenAI's $500 billion valuation, for instance, prices in not just dominance of narrow AI applications, but breakthrough to general intelligence that transforms every industry simultaneously.

IV. Mega-Cap Tech: The AGI Premium Protection Racket

While mid-cap and small-cap technology stocks have suffered corrections throughout 2025, the "Magnificent 7" mega-caps have maintained resilience by positioning themselves as AGI infrastructure plays:

Company	Market Cap	Current P/S	AGI Premium
NVIDIA	$1.2T	35x	GPU monopoly for AI/AGI training
Microsoft	$2.85T	12x	Azure AI platform + OpenAI partnership
Alphabet	$1.9T	8x	DeepMind AGI research leadership
Tesla	$900B	10x	Dojo supercomputer + FSD AGI ambitions
Oracle	$300B	7x	Autonomous database AI narrative

These companies have successfully marketed themselves not as mature technology providers, but as essential infrastructure for humanity's inevitable march toward AGI. Their relative outperformance versus smaller tech peers reflects this "AGI premium" embedded in valuations—a premium that evaporates instantly if AGI timelines extend beyond investor patience.

V. The Withering Black Swan: Valuation Collapse Scenarios

What happens when the market accepts that AGI may remain science fiction for another century? Historical bubble precedents provide sobering guidance:

Quantum Computing Stocks: 90-99.9% Decline

Ticker	Current Price	90% Decline Target	99% Decline Target
QUBT	$21.78	$2.18	$0.22
RGTI	$56.12	$5.61	$0.56
IONQ	$77.55	$7.76	$0.78
QBTS	$43.06	$4.31	$0.43

A reversion to "sane" price-to-sales multiples of 10x (generous for pre-revenue companies) implies 90-99.9% declines from current levels. This aligns with dot-com precedent, where speculative names trading at 30-40x sales lost 90-100% of value.

Pure-Play AI Startups: 74-90% Decline

Company	Current Valuation	10x P/S Target	Implied Decline
OpenAI	$500B	$130B	-74%
Anthropic	$183B	$50B	-73%
Perplexity AI	$20B	$2B	-90%

Mega-Cap Tech: 25-57% Decline

Company	Current Market Cap	AGI-Neutral Target	Implied Decline
NVIDIA	$1.2T	$516B	-57%
Microsoft	$2.85T	$1.91T	-33%
Tesla	$900B	$540B	-40%
Alphabet	$1.9T	$1.43T	-25%
Oracle	$300B	$213B	-29%

VI. Market Catalysts: JPMorgan and the Nobel Narrative

Recent events have accelerated the AGI bubble rather than puncturing it:

2025 Nobel Prize in Physics awarded for quantum computing breakthroughs triggered euphoric buying in quantum stocks, despite honorees acknowledging commercial applications remain decades away.
JPMorgan's $1.5 Trillion Initiative announcing investments in quantum computing and AI security sent stocks soaring 10-50% in single sessions.
DARPA's $1 Billion Commitment to achieve utility-scale quantum by 2033 reinforced narratives that breakthroughs are imminent.

These catalysts have extended the bubble's inflation phase, but they cannot change fundamental mathematics: current valuations require not just technological success, but AGI achievement within 5-10 years. Without that, mathematical reversion is inevitable.

VII. The Gift That Keeps on Giving (Until It Doesn't)

AGI has become the perfect investment narrative—a perpetually "five years away" breakthrough that justifies any valuation today based on hypothetical tomorrow. Like cryogenic immortality or fusion power, it promises transformation without requiring proof.

            The market has made a civilizational bet: that silicon or quantum physics will overcome the human mind. Yet centuries of philosophy, neuroscience, and cognitive research suggest consciousness and general intelligence may be irreducible to computation. We may be waiting for Godot while paying Magnificent 7 prices.
        

The AGI narrative succeeds because it's unfalsifiable within investment timeframes. Companies can perpetually claim progress toward AGI without ever delivering it, maintaining premium valuations through narrative management rather than product delivery.

VIII. Historical Parallels: When Science Fiction Met Markets

Dot-Com Bubble (2000): NASDAQ fell 78% over 30 months. Companies trading at 30-40x sales lost 90-100%. Current quantum stocks trade at 100-18,550x sales.

Biotech Bubble (1990s-2000s): Pre-revenue biotech firms promising miracle cures collapsed 95-99% when clinical milestones failed. Similar dynamics apply when AGI milestones perpetually slip.

Clean Tech Bubble (2006-2011): Solar and battery companies trading at 20-50x sales fell 80-95% when technological breakthroughs proved slower than projected. AGI faces identical risks.

IX. Conclusion: Preparing for the Withering

The no-AGI scenario represents a black swan—not because it's unlikely, but because markets have priced it at near-zero probability. The consensus view holds that AGI is inevitable and imminent. If that consensus cracks, repricing will be violent and indiscriminate.

TOTAL ESTIMATED MARKET VALUE AT RISK: $3+ TRILLION across quantum pure-plays, AI startups, and mega-cap AGI premiums. A 50-70% haircut on AGI-inflated valuations would represent the largest wealth destruction event since the 2008 financial crisis.

Investment Implications

Quantum pure-plays represent asymmetric risk: potential 90-99% downside versus limited upside given already extreme valuations.
AI startups trading above 30x sales embed AGI assumptions that may never materialize.
Mega-cap tech offers better downside protection but still faces 25-57% corrections if AGI premiums evaporate.
Traditional value sectors—industrials, financials, energy—offer refuge from AGI-narrative collapse.

Final Thoughts

We stand at a unique moment in financial history where markets have collectively embraced a technological singularity as near-certainty, pricing trillions of dollars on the assumption that human-level machine intelligence is imminent. Yet the fundamental question remains unanswered and perhaps unanswerable: Can silicon or quantum physics truly replicate human consciousness and general intelligence?

If the answer is "not within investment horizons," the withering will be swift and merciless. The no-AGI burst won't announce itself with trumpets—it will arrive quietly, as one quarterly earnings call after another fails to demonstrate meaningful progress toward the promised land.

The bubble will burst not with a bang, but with a collective realization: we've been waiting for Godot, and he's not coming.