AI Investment Boom Faces Growing Risks and Market Corrections

An analyst warns that the AI bubble is 17 times larger than the dot-com bubble and four times the size of the 2008 subprime crisis, citing scaling limits of large language models, diminishing returns, and misallocation of capital driven by low interest rates, which could lead to a recession and prolonged economic challenges. The firm recommends shifting investments toward resources, emerging markets, and gold, while avoiding AI and platform companies.