AI bubble

1 day ago - Debt funding has also raised the risk of the bubble. Analysts at Morgan Stanley estimated that debt used to fund data centers could exceed $1 trillion by 2028. A Goldman Sachs chief equity strategist believes the rapid increase in stock valuations is likely justified by powerful and sustained profit growth. Goldman also noted that valuations for the large US growth stocks that led the market higher in the bull market since October 2022 are modest compared to the dot-com bubble.

November 25, 2025 - Over the past 5 trading days, the S&P 500 fell 1.65%, while NASDAQ declined 2.26%, led by a tech sell-off, despite a blockbuster result from Nvidia Corp. (NASDAQ:NVDA) reflecting investor concerns over the AI bubble.

December 1, 2025 - Unlock unlimited access to all our award-winning journalism, subscriber-only podcasts and newslettersSubscribe ... Ray Dalio spied the dotcom bubble early. “We’re approaching a blow-off phase of the US stockmarket,” said the founder of Bridgewater, one of the world’s biggest hedge funds.

November 14, 2025 - Stock market bubbles frequently produce hot markets in initial public offerings, since investment bankers and their clients see opportunities to float new stock issues at inflated prices. These hot IPO markets misallocate investment funds to areas dictated by speculative trends, rather than to enterprises generating longstanding economic value.

November 20, 2025 - The ratio of U.S. equity wealth to total money today resembles historical peaks seen in the lead up to the Great Crash of 1929 and the dotcom bubble of the 2000s, Dalio suggested in his blog, implying that that the next 10 years of real returns in stocks—that is, price appreciation adjusted for inflation and other effects—is pretty much zero. He isn't alone in forecasting paltry future returns implied by market indicators.

August 20, 2025 - Stock trader Peter Tuchman, known as the 'Einstein of Wall Street,' works on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York City Monday. Recent surges, led by tech companies, have some questioning whether AI is creating another bubble. (AFP/Getty Images) Stock markets surged again this week, reaching new all-time highs.

1 week ago - The S&P 500 (^GSPC) is on pace to close out the year with a gain of over 17%, powered by a 26% jump in technology stocks (XLK). “I don't see a bubble at all. However, I do believe we're going to be going into a bubble,” Sanctuary Wealth chief investment strategist Mary Ann Bartels told Yahoo Finance last week. ... Batels compared the current market to prior bubbles, including the late 1920s and the dot-com bubble.

November 21, 2025 - If we’re in a bubble, analysts say, those stocks helped inflate it. Already, many investors are turning to cash. Money market funds held a record $7.7 trillion in assets in September, The Wall Street Journal reported.

News reports are filled with widespread fears that America’s biggest corporations are propping up a bubble that will soon pop. During my visits to clients in Asia and the Middle East last month, I was often asked about the possibility of a bubble surrounding artificial intelligence, and my discussions gave rise to this memo. I want to start off with my usual caveats: I’m not active in the stock market...

November 24, 2025 - "The extent of the unwind only takes many of the popular tech stocks back to September levels. We entered this period with slightly elevated cash levels, so we are comfortable waiting for a better entry point." Buying opportunities Michael Field, chief equity strategist at Morningstar, told CNBC on a call that while he was not "ignoring the risk of a bubble altogether," he did not believe one had already formed in markets.

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Wharton’s Itay Goldstein discusses financial bubbles, the mechanics of betting against them, and the risks facing the AI boom. ... Wall Street rides an AI-fueled rally that has pushed major indices to new highs that’s driven largely by a handful of dominant tech firms. As enthusiasm around artificial intelligence reshapes markets and concentrates risk, questions are mounting about whether the surge reflects durable growth or the familiar shape of a speculative bubble.

The market appears to have priced in a lot of good news, creating high expectations for future growth. While this may indicate overvaluation, a true bubble is characterized by a relentless and unsustainable rise in valuations. The U.S. market has been considered expensive for several years now and recent strong market returns have primarily been driven by earnings growth rather than by multiple expansions. Figure 1: Stock ...

October 15, 2025 - The term "bubble," in an economic context, generally refers to a situation where the price for something—an individual stock, a financial asset, or even an entire sector, market, or asset class—exceeds its fundamental value by a large margin. Because speculative demand, rather than intrinsic worth, fuels the inflated prices, the bubble eventually but inevitably pops, and massive sell-offs cause prices to decline, often quite dramatically.

4 days ago - Silver is overbought with the currently rally showing some signs of a bubble, according to Ned Davis Research. The metal surged more than 10% on Tuesday to close at an all-time high of $77.92, bouncing back from its worst day in four years on Monday.

2 weeks ago - There are worries that we are currently in a market bubble that's being driven by the ongoing artificial intelligence (AI) boom. The "Magnificent Seven" tech stocks represent about one-third of the S&P 500's market cap, and they have had a major ...

November 20, 2025 - Talk of a stock market bubble has become omnipresent on Wall Street as investors eye lofty valuations in the tech sector and concerns grow about the billions being poured into AI investments.

December 4, 2025 - The US stock market has tripled to $70 trillion since the onset of the Covid-19 pandemic, and more than half of American households are exposed in some way. The boom is contributing to the “wealth effect” and underpinning consumer spending, ...

1 month ago - Masserio of RBC Capital Markets remains wary of the path ahead for the stock market. “There is always a camp that says this time is different,” he said while still acknowledging that “the ice is thicker under these more expensive stocks in 2025 than in the early 2000s.” · Bubbles tend to start with a reasonable thesis before investors’ bets on the future become divorced from reality.

1 week ago - If the market decides these large AI players are overvalued, those big company stocks will be the first to see a rapid decline as well as any company heavily tied to AI infrastructure, ChatGPT said. Because these companies now make up a huge share of the market, a correction in even a handful of them could lead to a fall in both the S&P 500 and Nasdaq. This could lead to an environment similar to the dot-com bubble burst of the early 2000s.