Concerns are emerging among investors regarding the Asian markets' heavy reliance on the artificial intelligence sector. The worry is that these markets could face a downturn if the US tech sector experiences a significant correction. This dependence has led to fears of a potential 'bubble', reminiscent of the dot-com era, with some questioning the sustainability of current valuations.
Fuelled by massive investments and the rapid development of AI technologies, including deals involving companies like OpenAI, Samsung, and SK Hynix, the tech sector has seen stock prices surge. However, some analysts suggest that the rally may be running out of steam, making the market vulnerable to negative surprises.
As investors grapple with hesitant conviction, they are weighing whether the AI boom represents a transformative industrial revolution or a speculative bubble. Some are hedging their bets with safe-haven assets like gold and Chinese stocks, anticipating a possible slowdown or burst in the AI sector.
