The AI bubble has further to run despite the looming crash
TL;DR
The Guardian argues the AI rally is not over: US stocks keep climbing despite crash warnings because large tech firms are profitable and investors fear missing the next leg up. The pressure point is concentration: the S&P 500, Nasdaq and the Magnificent Seven now carry a huge share of market value and investor expectations. Jeremy Grantham, Ludovic Subran and Dhaval Joshi warn of bubble dynamics, AI overinvestment and a market where dissenting views are getting squeezed out.
Nauti's Take
This is not an anti-AI argument; it is an anti-euphoria argument. The sharp point is that bubbles can last much longer when the leading companies still print real profits and investors fear missing the next leg up.
The better question is not whether AI matters, but who still captures outsized margins once models, compute and AI features become more like infrastructure.
Briefingshow
This is bigger than stock-market anxiety because AI valuations now feed into pensions, ETFs, corporate financing and global risk appetite. When a handful of US tech stocks drive the index, the market can look healthier than it really is. Businesses need to hold two ideas at once: AI can be useful, while AI assets can still be overpriced.
Sources