Experts Warn AI Bubble Risks Amid Valuation Concerns and Market Rally
Originally Published 3 months ago — by Fortune
A top analyst warns that the current AI-driven market rally, heavily centered on Nvidia and a few big tech stocks, may be a bubble fueled by circular financing and excessive capital expenditure, risking a crash similar to past tech bubbles like Enron and Cisco. Concerns include overinvestment in AI infrastructure, systemic risks from interconnected deals, and signs of a potential slowdown as data center investments mature. While some experts see opportunities, many acknowledge the market's fragility and the possibility of a downturn.