AI Frenzy Pushes Markets To Record Highs As Analysts Warn Of Bubble Risk

Benzinga

AI-fueled optimism has pushed U.S. markets to record highs, but analysts warn valuations resemble a “bubble light.” With Big Tech dominating gains, the IMF and BOE caution that AI-driven concentration could trigger a sharp correction.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02AI-driven optimism has propelled U.S. markets to record highs this year,

00:05but analysts warn that valuations are approaching dot-com bubble territory,

00:09according to CNN. Since OpenAI's 2022 debut of ChatGPT, big tech leaders including Microsoft,

00:16Meta, Amazon, and NVIDIA have poured hundreds of billions of dollars into data centers and

00:21AI infrastructure, fueling soaring stock prices. The IMF and Bank of England both warned this week

00:26that equity markets are vulnerable to a sharp correction as concentration in AI-linked stocks

00:30deepens. Seven mega cap tech companies now account for more than half the S&P 500's gains

00:35since 2022. Mike Mullaney said the market is in bubble light territory with high valuations

00:41when investor sentiment's still below peak exuberance, suggesting the rally could continue.

00:45For all things money, visit Benzinga.com.

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