AI valuation fears are back and European stocks aren't immune

Market Volatility and Valuation Concerns - Market volatility is being highlighted as Wall Street leaders warn of potential market corrections and high valuations, with David Solomon from Goldman Sachs predicting a 10 to 20% drawdown in equity markets within the next 12 to 24 months [1] - Concerns over high valuations, particularly in AI companies, are not new, indicating a potential reassessment of capital flows and investment strategies [2][3] Impact on European Firms - Several European firms are benefiting from investments in AI, such as LRA, a French company that sells cooling products to major tech firms, and Scasa, a Swedish construction group focused on building AI data centers [4][5] - Scasa reports a strong pipeline of data centers in the US and Europe, indicating no slowdown in demand from large international customers [6] Earnings Season and Market Outlook - Despite recent volatility, the overall earnings season has been reassuring, with results beating expectations and maintaining a positive outlook for the market [8][9]