The AI bubble has further to run despite the looming crash
TL;DR
The Guardian argues the AI rally is not over yet: bubble warnings are getting louder, but FOMO, strong tech profits and abundant global savings keep investors in the game. The key risk is concentration in the S&P 500: the ten largest companies reportedly account for about 40 percent of the index, far above the dotcom-era peak. Jeremy Grantham, Ludovic Subran and Dhaval Joshi warn about bubble territory, rising corporate borrowing and investors becoming too aligned in their views.
Nauti's Take
The useful takeaway is simple: a great technology is not automatically a great investment. AI can be productive, useful and historically important while many valuations still make little sense.
Anyone buying everything with an AI label is often betting less on technology than on exiting before the next investor does. That can work for a while, but it is not a strategy.
Briefingshow
This is not just a Wall Street story. When US tech stocks dominate indexes, pension exposure and global portfolios, an AI correction can quickly become a wider financial shock. The sharper point is timing: a bubble can look irrational for years and still keep climbing while profits, liquidity and FOMO reinforce each other.
Sources