An AI bubble is no longer Wall Street’s biggest fear. This stock-market risk just took its place.
Global fund managers are more worried about a “disorderly rise” in bond yields than a bubble for AI, says Bank of America’s latest survey.
Semiconductor stocks dipped on Monday after Anthropic CEO Dario Amodei urged the AI industry to slow down. Similar concerns were expressed by OpenAI CEO Sam Altman and Elon Musk, co-founder of SpaceX and Tesla. However, Wall Street analysts maintain that the AI train has already departed the station, with no signs of slowing down.
Analyst Gil Luria from D.A. Davidson questioned the motives behind such warnings, suggesting they were aimed at stifling competition. Even if AI development were to decelerate, big-spending hyperscalers like Alphabet, Amazon, Meta, and Microsoft are expected to thrive. These four companies have invested a total of $293 billion in AI infrastructure over the past two quarters of 2026, with Meta experiencing a 58% quarter-over-quarter increase.
The AI spending from these tech giants is projected to reach nearly $600 billion this year alone. Nancy Tengler, CEO and chief investment officer of Laffer Tengler Investments, emphasized that AI has already permeated various sectors, making any slowdown improbable. Giuseppe Sette, co-founder and president of Reflexivity, sees any potential dip in AI stocks as a buying opportunity, pointing out that the US is leading the AI race against China.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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