The AI bubble has further to run despite the looming crash
TL;DR
The Guardian argues that the AI bubble may keep running despite crash warnings because big tech is still highly profitable and investors fear missing out. The pressure point is concentration in the S&P 500 and Nasdaq, especially around Amazon, Alphabet, Nvidia, Meta, Microsoft, Apple and Tesla. Warning signs include debt-funded AI spending, SpaceX bond plans, and fresh bubble warnings from Allianz, Jeremy Grantham and BCA Research.
Nauti's Take
The useful point is the split between AI as real technology and AI as market mania. That is where the trap sits.
Even if AI becomes as important as electricity or the internet, today’s valuations do not automatically make sense. The better question is not whether the bubble bursts, but who still has cash flow, customer value and pricing power after it does.
Briefingshow
This is not just a stock-market story. When a small group of US tech stocks carries a large share of global market expectations, pensions, ETF portfolios and startup funding all lean on the same narrative. AI can become economically important and still be overpriced as an investment story.
Sources