The AI bubble has further to run despite the looming crash
TL;DR
The Guardian argues the AI rally is not done yet: despite crash warnings, the S&P 500 and Nasdaq keep rising because investors fear missing the next leg up. The core risk is concentration: Amazon, Alphabet, Nvidia, Meta, Microsoft, Apple and Tesla carry a large share of the US market's AI expectations. There are plenty of warning signs: Allianz CIO Ludovic Subran flags SpaceX debt as bubble territory, Jeremy Grantham is selling, and BCA's Dhaval Joshi warns of crowd madness.
Nauti's Take
The useful question is not whether AI matters. That is already settled.
The question is who keeps durable margins when models, chips and data centers increasingly behave like infrastructure. That is where the bubble story becomes practical: it separates real productivity from the hope that every large tech stock is automatically an AI monopoly.
Briefingshow
This is bigger than stock-market nerves because AI valuations now sit inside pensions, ETFs and global portfolios. If the market is right, a new infrastructure wave is forming. If not, many AI winners may end up valued like utility providers, not monopoly machines.
Sources