AI Stocks Fuel Tech Bull Market Amid Bubble Concerns

Investors are eagerly betting on artificial intelligence (AI) to supercharge the tech bull market, despite fears of a potential bubble. A surge in US technology stocks has been driven by investor excitement around advancements in AI, with more than $4tn added to the value of companies in the Nasdaq-100 Index since the start of 2021. Technology-focused funds also attracted a record $8.5bn from investors during the last week of May. However, some see a “fear of being replaced” driving the rush, as investors turn to AI companies to hedge their bets against the perceived threat of unemployment. The boom has pushed valuations of certain stocks to levels that have resulted in significant losses in the past, leaving some analysts with lingering caution. While AI is expected to have a major impact on various industries, experts warn that investors should be cautious with investments in companies involved in the AI market.