The International Monetary Fund and the Bank of England have cautioned that the rapid rise in AI‑related equities could signal a bubble poised to burst. Both institutions highlighted stretched valuations, especially for technology firms centered on artificial intelligence, and warned that disappointing AI adoption or heightened competition could trigger a sharp market correction. The warnings come amid a wave of investment sparked by OpenAI’s ChatGPT, Microsoft’s multibillion‑dollar partnership and a broader rush of capital into AI hardware and software ecosystems. Read more →

The Bank of England has cautioned that AI‑related stock valuations have reached their highest levels since the dot‑com surge of the late 1990s. While current price‑to‑earnings ratios appear less extreme when based on future profit expectations, the central bank notes that increasing concentration within market indices leaves equity markets especially vulnerable if enthusiasm for AI wanes. The BoE draws parallels to the 2000 dot‑com peak, highlighting the rapid rise and steep fall of the Nasdaq during that era and warning that similar dynamics could unfold for AI‑focused equities. Read more →