Tech Giants Dominate S&P 500, Raising Risk Alerts
Valuations in the artificial intelligence sector are soaring, often detached from profitability. Echoes of the 2000 dot-com bubble grow louder as institutions like the IMF, Bank of England, and JPMorgan sound alarms. Market ratios appear stretched, index concentrations reach extreme levels, and retail investor participation surges—all hallmarks of potential overheating.
Colossal infrastructure investments in AI contrast sharply with limited tangible returns. Sam Altman of OpenAI recently questioned the sector's euphoria, pledging to refocus on human-centric development. The central debate crystallizes: Is AI driving a new economic paradigm or fueling a speculative bubble poised to collapse?