Is the AI Bubble Going to Pop? Here's How It Could Happen
Australian Financial Review
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Details
- Date Published
- 16 Sept 2025
- Priority Score
- 1
- Australian
- Yes
- Created
- 17 Sept 2025, 05:01 pm
Description
Investors think stocks are overvalued, but they’re backing the artificial intelligence boom anyway. However, GQG Partners says they should follow the money.
Summary
The article examines the current atmosphere among investors regarding the artificial intelligence market, highlighting a growing apprehension of an impending bubble burst. It reports that despite high valuation concerns, a significant portion of fund managers are still heavily invested in AI stocks, driven by optimism over AI's growth potential. The article discusses how financial strategies are adapting to accommodate AI market fluctuations, though it does not delve deeply into AI safety or the prevention of catastrophic risks. It provides a financial perspective on AI's influence but lacks a substantial focus on specific safety protocols or governance frameworks addressing AI-based existential threats.
Body
TechnologyChanticleerPrint articleSep 17, 2025 – 10.33amSaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginThere’s a certain fatalism building among professional investors, according to the latest edition of Bank of America’s global fund manager survey.A staggering 58 per cent of fund managers believe that equities are overvalued. That’s the highest ever recorded in the history of the survey, which stretches back to the days of the dotcom boom. And yet, the proportion of managers overweight stocks has reached a seven-month high of 28 per cent, while cash levels have fallen to a seven-month low of 3.7 per cent.Loading...James Thomsonis senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine.Connect withJamesonTwitter.EmailJamesatj.thomson@afr.comSaveLog inorSubscribeto save articleShareCopy linkCopiedEmailLinkedInTwitterFacebookCopy linkCopiedShare via...Gift this articleSubscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber?LoginLicense articleFollow the topics, people and companies that matter to you.Find out moreRead MoreFetching latest articlesDion Lee lost his business. He’s backLauren SamsThe one dish worth $1.4m a year to this iconic Sydney restaurantThe CEO who found her mojo when she demoted herselfWhy this CEO asks job candidates to describe their desk to himSally Patten, Iona Rennie and Rachael BoltonWhy this CEO left private equity to run a beauty retailerHow this top lawyer made partner at 29These Sardinian drops let you sip on centuries of traditionMax AllenTipping is out, Vegemite is in on this new Aussie-made river cruiserWhy luxury cruises are heading inlandPub and pokies king Sam Arnaout issued please explain by corporate copPrimrose Riordan and Greg BearupRich Lister and Toga founder Ervin Vidor dies at 92Inside the private group with more revenue than Hancock Prospecting