The S&P 500 hit a new all-time high Wednesday (up 0.58% on the day), driven as usual by tech stocks (the Nasdaq Composite rose 1.12%), despite the fact that both the IMF and the Bank of England warned that AI might be a bubble and stocks are due for a sharp correction.
For weeks, all the talk on Wall Street is that the growth of the AI sector must, surely, be unsustainable and that this bubble is due to pop. The record-high price of gold alone suggests that a lot of investors want a hedge against an implosion in U.S. tech stocks.
Yet some analysts are saying that you should believe the hype. They argue:
Corporate demand for AI tools is real and growing.
AI build-out is being funded by hard cash from tech company balance sheets, not risky debt.
