Magnificent Risk: Why Nvidia And Microsoft Are At The Center Of El-Erian's 'Rational Bubble' - Meta Platforms (NASDAQ:META)

A “rational bubble” in AI and a surge in corporate debt are creating a fragile economic environment where minor “accidents” could trigger a broader sell-off.Distinguished economist Mohamed El-Erian warned in a conversation with Yahoo Finance Invest that while the aggregate value of AI is significant, the market has entered a “rational bubble” where overinvestment is common. He cautions that while foundational models may succeed, many companies are simply attaching “AI labels” to their operations to attract ...