Now even fund managers agree that AI stocks are in a bubble

Core Insights - Concerns are rising about a potential bubble in artificial intelligence stocks, with 54% of fund managers believing tech stocks are overvalued, an increase from the previous month [1][4] - The surge in tech stocks is largely attributed to significant AI-related deals involving companies like OpenAI, Nvidia, Oracle, AMD, and Broadcom [2] - The nature of these deals raises concerns about unsustainable valuations, reminiscent of vendor financing practices seen during the dot-com crash [3][4] Group 1 - Institutional fund managers are increasingly worried about the valuation of tech stocks, with 60% stating that global equities are too expensive [1][4] - AI has been identified as the biggest tail risk in the Bank of America survey, surpassing concerns about inflation and geopolitical issues [4] - The recent investment increases by tech firms indicate significant risks, although the past experiences of the dot-com bubble may not be directly replicated [4] Group 2 - A second wave of inflation and the potential loss of Federal Reserve independence are also significant risks identified by fund managers [5] - The perception of trade war risks has decreased since April, when it was the primary concern for 80% of respondents [5] - OpenAI's CEO, Sam Altman, has acknowledged that the current excitement around AI may be overhyped, drawing parallels to the dot-com boom [6]