Financial expert warns: AI stocks are driving up stock market prices – rising valuations pose risks

Financial expert warns: AI stocks are driving up stock market prices – rising valuations pose risks

According to a report by t3n.de, the hype around artificial intelligence (AI) is driving the upward trend in the stock markets. Tech stocks in particular are recording significant increases. For example, the Nasdaq 100 tech index has increased by 42 percent, while the S&P 500 has increased by 18 percent. Specifically, the chip manufacturer Nvidia is particularly benefiting from the AI ​​boom; the price of Nvidia shares has increased by 232 percent since the beginning of the year.

But while some experts, such as those at Bank of America, warn that AI cannot protect the tech industry from the negative influences of high interest rates, others, such as Goldman Sachs, are more optimistic. Goldman Sachs views the affected companies as highly but not extremely overvalued and believes that the AI ​​space is still in the first part of a typical technology wave. Market analysts at Morgan Stanley are also warning that the AI ​​bubble could be nearing its peak, which could lead to the bubble bursting.

In summary, it can be said that the current AI boom is driving stock market prices and is considered the driving force behind price increases on the stock markets. However, there are also concerns about possible blistering. Investors should therefore continue to monitor the AI ​​market closely, as further developments and the possible effects on the financial industry cannot be clearly predicted.