Experts are debating whether the current surge in AI investments is creating a speculative bubble, similar to the dot-com era, with potential for a significant market correction. While AI's transformative potential is acknowledged, concerns are rising about overvalued AI companies, the use of financial engineering, and a disconnect between investment and actual productivity gains. Some analysts point to the massive capital being poured into AI infrastructure and the lack of financial returns for many companies as warning signs.
Despite record-high stock markets, investors are pulling substantial sums from equity funds, seeking safer havens like bonds and money market funds, indicating growing unease. The rapid rise in valuations of leading US tech companies, particularly those involved in AI, is also under scrutiny.
While some believe a full-scale AI crash is unlikely, a market correction is possible as investors reassess the alignment between hype and tangible results. The situation remains fluid, with the potential for significant market volatility as the AI landscape continues to evolve.
