Investors warn of AI bubble as tech stocks reach record highs

Gains for AI firms have overcome declines for financial, healthcare, and consumer-focused companies. High-profile investors warned of an impending AI bubble after tech stocks drove the S&P 500 and Nasdaq to all-time highs. Gains for AI firms have overcome declines for financial, healthcare, and consumer-focused companies: “Increasingly, the market is running on one engine,” The Wall Street Journal reported, while “ just about everything else is going down.” That has driven fears that any fall in tech stocks, which now represent a huge portion of many investors’ portfolios, could have dire consequences. Bridgewater founder Ray Dalio told a conference in Singapore that he saw a “classic bubble” market that was close to bursting, while Temasek’s chief investment officer argued that an unwinding of the AI trade was the biggest risk to markets in 2027.