The possibility that we are currently in an AI bubble is real. As with previous hypes, the valuation of AI companies seems to be ahead of their actual profitability. Moreover, the S&P 500 is heavily overconcentrated in a handful of large tech players that are benefiting from the AI hype. Should these fall, the entire index will be pulled down with them.
That risk is compounded by the fact that the S&P has become historically expensive, with P/E ratios well above average. The risks are clear: if promised growth fails to materialize, valuations could collapse hard. The situation is reminiscent of the dot.com bubble of the early 2000s, but with an important difference: now, a lot of credit is being borrowed to finance AI growth. That makes a blow more dangerous, because debt puts extra pressure in a downturn.
Conclusion: AI could change the world permanently, but current valuations seem fragile. A bubble need not mean AI disappears, it does mean investors should prepare for sharp corrections.
$NVDA (+1,98 %)
$MSFT (+0,07 %)
$AMZN (+0,09 %)
$GOOGL (+1,59 %)
$META (+0,27 %)
$AVGO (+0,32 %)
$TSM (+2,19 %)
$ORCL (+0 %)
$PLTR (-1,2 %)
$ADBE (+0,74 %)
$AMD (-2,25 %)
$AAPL (+0,37 %)
$IBM (-0,12 %)
$QCOM (-0,33 %)
$MU (-0,39 %)
$SNOW (-0,4 %)
$CRM (+0,31 %)
$MDB (+0,46 %)
$AI (-1,47 %)
$VOO (+0,04 %)
