AI bubble

1 week ago - In September 2025, the Australian Financial Review said that "If we really are in another share-market bubble, it's surely the most anticipated example in history." In October of that year, Jamie Dimon, head of JP Morgan, the largest bank in the US, said he thinks "AI is real" but said he believes ...

But while growth estimates for Wall Street's leading AI stocks are robust, several historical headwinds point to the artificial intelligence bubble bursting in 2026.

AI valuations are rising, but are we in a bubble? Explore why we believe that strong earnings, real demand, and limited debt suggest the AI boom may be built to last.

3 weeks ago - This is likely the Phase one of the AI bubble burst, likely to lead to a reduced AI capex in the next Phase.

Wharton finance crises expert Itay Goldstein explains how bubbles form, why they can be so dangerous, and what today’s AI boom shares—and does not—with past market madness like the one described in “The Big Short.” (Image: Getty / Spencer Platt) Investor Michael Burry—famous for predicting and profiting from the 2008 housing-market collapse—has set his sights on another sector many believe is ‘too big to fail’: Big Tech’s multitrillion-dollar artificial intelligence spending spree.

1 month ago - Plenty of other companies are reliant on external funding to pursue AI ambitions. Oracle shares soared as it racked up bookings for cloud computing services, but building those data centers will require massive amounts of cash, which the company has secured by selling tens of billions of dollars in bonds. Using debt puts pressure on a company because bondholders need to be paid in cash on a schedule, unlike equity investors, who mostly profit as share prices rise. Oracle’s stock got pounded on Thursday after the company reported significantly higher capital expenditures than expected in its fiscal second quarter and cloud sales growth missed the average analyst estimate.

3 weeks ago - As mentioned, AI players across the board have seen their share prices soar in recent years due to optimism about AI-driven growth. But investors have started to worry that, in some cases, future earnings won't justify the spending and stock prices we're seeing today. The S&P 500 Shiller CAPE ratio, a measure of stock prices in relation to earnings over a 10-year period, has climbed to a high it's only reached once before throughout its history. And that other time was before the dot-com bubble burst.

5 days ago - The reporting shows that plenty of fear and uncertainty remain over the untold billions of dollars being poured into wildly unprofitable AI ventures — a dynamic that’s seen AI companies’ valuations skyrocket to record heights, despite dubious prospects of ever turning a profit. Some are pulling back on their investments in major tech stocks, while others are outright betting on eventual drops in share prices.

3 weeks 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.

1 month ago - Accordingly, it seems that there is an AI-bubble – but it won’t necessarily end in a repeat of 2008. The price of any stock can be broken down into two components: its fundamental value, and the inflated bubble value. If the stock’s price is above its fundamental value, there is a bubble in its price. The fundamental value of an asset is the discounted sum of its expected future dividends. The key word here is “expected”. Given that no one, not even ChatGPT, can predict the future, the fundamental value depends on the subjective expectations of each investor.

2 weeks ago - The S&P 500 gained 16.4 percent this year. But dependence on artificial intelligence remains a risk for 2026.

1 month ago - This makes it a valuable teacher and suggests that a bubble-bursting event for Nvidia and Palantir is a very real possibility in 2026. Jan 11, 2026 •By Keith NoonanIf You'd Invested $100 in Nvidia 10 Years Ago, Here's How Much You'd Have Today ...

December 4, 2025 - The big tech companies are so closely intertwined with one another that Alphabet CEO Sundar Pichai admitted that "no company is going to be immune" from a bubble bursting in AI. Hyperscalers are responsible for the bulk of the growth in the ...

1 month ago - "There's going to be some pretty serious bifurcation. We've seen it in the last, say, two months of 2025. I think that gets worse in 2026." ... StockStory aims to help individual investors beat the market.

October 8, 2025 - The meteoric rise can be primarily explained by the increased focus of venture organizations, such as Andreessen Horowitz and Y Combinator, on AI startups and the mindboggling valuations of those emerging companies. Under such exuberant conditions, Patricof reflected, “There will be winners and losers, and the losses will be pretty significant.” · The warnings of exuberance may be mounting, but how the bubble pops is a question that has gone unanswered.

1 week ago - Most Read from Bloomberg · Sinkholes and Quake-Hit Roads Expose Japan’s Infrastructure Emergency · Prediction Market powered by · The S&P 500 Index jumped 16% in 2025, with AI winners Nvidia Corp., Alphabet Inc., Broadcom Inc.

2 weeks ago - In the Motley Fool survey, published Dec. 15, two-fifths of investors said they believe AI stock prices reflect a “speculative bubble,” rather than a “sustainable trend.” The survey reached 2,600 adults.

3 days ago - Some commentators suggest investors are currently paying too much for technology stocks because of misplaced expectations about how much the companies will make from developments in AI. However, others argue that this is not the case. Bankers at UBS, for example, had positive predictions for AI in their year ahead report.