AI Bubble

The “AI bubble” debate centers on whether corporate valuations and capital spending have become detached from actual earnings amid the artificial intelligence boom. Market views have recently diverged. Michael Burry, Ray Dalio and others have warned about computing demand, the semiconductor cycle and AI’s outsized weighting, while expectations of price cuts by OpenAI have deepened concerns about commoditization. Others argue that investment could continue through 2028 or even longer. With AI already influencing U.S. equities, chip stocks and crypto markets, tracking corporate earnings, token prices and capital expenditures can help gauge whether growth can support current valuations.