‘No playbook’ for AI bubble fears, says Deutsche Bank investment arm CEO
REUTERS
The explosion in the value of artificial intelligence stocks poses risks to global markets for which there is “no playbook”, the CEO of Deutsche Bank’s 1.1 trillion euro ($1.3 trillion) money manager DWS told Reuters, amid growing concerns that the sector is in a bubble.
The AI stocks frenzy has drawn comparisons with the 1990s dotcom boom and bust, but DWS’s Stefan Hoops said the recent rally was different as it was being driven by everyday retail investors – not institutions – and they had yet to be tested.
The so-called ‘Magnificent Seven’ - including Nvidia and Meta - have seen their share prices soar, fuelling fears about the scale of market exposure to just a few names. Technology firms are among the stock market’s big fallers in recent days, although they are still well up on the year.
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