The Business Times
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NEWS ANALYSIS

The AI bubble will eventually burst, but investors are enjoying the ride while it lasts

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    • Shares of Google, Microsoft and Alphabet have soared by 50 per cent or more in the space of a few months.
    • Shares of Google, Microsoft and Alphabet have soared by 50 per cent or more in the space of a few months. PHOTO: REUTERS

    Rob Curran

    Published Mon, Jul 17, 2023 · 05:00 AM

    THE stock market is partying like it’s 1999 all over again as an artificial intelligence (AI) craze has caused a bubble in tech stocks. The only question now is how long this party can actually last.

    Strategists at brokerage Bank of America Global Research are already sounding the bell for closing time. They view the current bull market as a mere blip, and anticipate a “baby bubble” in AI stocks to mature soon.

    If one were to zoom out, the year-to-date gains in the S&P 500 are almost entirely attributable to seven or eight stocks, said Kent Engelke, chief economic strategist at brokerage Capitol Securities.

    Artificial IntelligenceNasdaqMicrosoftNvidiaGenerative AI

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