Factbox-Opinions split over AI bubble after billions invested

Core Viewpoint - Concerns are rising about a potential bubble in artificial intelligence investments, reminiscent of the dotcom boom, as investors remain vigilant for signs of declining demand or underperformance of massive spending [1][2]. Group 1: Investor Sentiment - A BofA Global Research survey indicates that 54% of investors believe AI stocks are in a bubble, while 38% do not share this view [1]. - The Bank of England warns that a downturn in investor sentiment regarding AI could lead to significant market declines [2]. Group 2: Market Risks - The Bank of England's Financial Policy Committee highlights an increased risk of a sharp market correction due to AI-related investments, noting the potential for material spillovers to the financial system [3]. - Bryan Yeo from GIC Private emphasizes the existence of a hype bubble in early-stage AI ventures, suggesting that valuations may not be justified for all companies [4]. Group 3: Perspectives on Investment Sustainability - Joseph Briggs from Goldman Sachs argues that the influx of multibillion-dollar investments in U.S. AI infrastructure is sustainable, countering fears of overheating in the sector [5]. - Despite a strong macroeconomic case for AI investment, Briggs cautions that identifying the ultimate winners in the AI space remains uncertain due to rapid technological changes and low switching costs [6].