Most Fund Managers See AI Stocks in Bubble Territory, BofA Survey Shows
Global fund managers have reached a consensus on the frothiness of AI-related equities. Bank of America's October survey reveals 54% now view tech stocks as overvalued—double last month's figure—with bubble concerns hitting record levels. The Nasdaq 100's 18% YTD surge and forward P/E of 28 (versus a 23 historical average) fuel debates about disconnects between price and fundamentals.
Yet capital continues flowing into US equities, with institutional exposure hitting an eight-month high. Recession fears have evaporated to early-2022 lows, while cash allocations decline. "The AI HYPE cycle is overriding valuation discipline," observes one strategist, as productivity narratives overpower traditional metrics.