Equities: AI Boom risks and resilience – Commerzbank
The post Equities: AI Boom risks and resilience – Commerzbank appeared on BitcoinEthereumNews.com. Commerzbank economists Dr. Jörg Krämer and Bernd Weidensteiner argue that the AI-driven investment surge in US high-tech and IT is substantial but not yet excessive compared with past booms. They see early signs of faster US productivity, elevated equity valuations and profit expectations, and warn of potential corrections, yet conclude the AI boom and associated stock market strength are likely to persist for now. AI boom, valuations and bubble risk “The introduction of artificial intelligence has triggered an investment boom, particularly in the United States. The sheer scale of the resources being deployed increases the risk of a bubble. This could trigger a setback in the stock markets. We have assessed the risks and concluded that the boom is likely to continue for the time being.” “Furthermore, while stocks are expensive, they are valued lower than they were at the peak of the dot-c