Apollo Economist Warns AI Frenzy Surpasses 1999 Tech Bubble

What Happened

Torsten Slok, chief economist at Apollo Global Management, has warned that enthusiasm for AI is fueling a market bubble even larger than the tech surge of 1999. In a recent note to Yahoo Finance, Slok referenced record investor inflows and surging stock valuations tied to artificial intelligence. Companies like Nvidia and other Big Tech giants have seen tremendous gains, pushing the broader market upward. Slok emphasized that while AI innovation is real, the level of speculation and market risk has reached unprecedented territory, surpassing the exuberance of the dotcom era. The warnings come as investors pour into AI and automation-related equities, hoping for massive future returns.

Why It Matters

This warning highlights concerns about the sustainability of current AI-driven valuations and the risk of a market correction, drawing parallels to the dotcom bubble burst. The debate raises important questions for tech investors and the future stability of financial markets. Read more in our AI News Hub