Vanguard, a major asset manager, warns that the current rush into artificial intelligence stocks may overestimate the near-term impact of AI technology, increasing the risk of a market correction. Chief Economist Joe Davis suggests a cautious approach, noting the high valuations of AI-linked companies despite potential long-term benefits.
Investors have rushed into artificial intelligence (AI) stocks this year, potentially overestimating its near-term impact, according to Vanguard , the second-largest asset manager globally. Joe Davis, Vanguard ’s chief economist, warns of a potential market correction , noting that while AI could be transformative, current market valuations suggest a higher probability than what is realistically probable.
Shares of AI-linked companies have surged, with Nvidia leading the charge, but Davis cautions that these companies may not ultimately benefit the most from AI’s transformative potential
Artificial Intelligence Stock Market Vanguard Market Correction Economic Impact
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