AI 'bubble’ could already be over $1.2trn in size, says Amundi chief
Largest asset manager in Europe claims hype around artificial intelligence is making it difficult to get a true valuation of companies
The surge in valuations for companies with exposure to artificial intelligence (AI) is developing into the equivalent of the dotcom bubble, which burst in the late 1990s, a leading investment analyst has warned.
Vincent Mortier, group chief investment officer at Amundi, the French asset manager, said the “hype” around AI-related stocks had all the characteristics of a bubble that could already be over $1.2 trillion in size.
“Financial markets today remind me of 1999/2000 when it was difficult to justify some company valuations and we were told to forget about traditional metrics. Today, I see the same in lots of segments such as artificial intelligence, where people think it’s normal for a company to have a price earnings multiple of 200 times because the prospects are huge,” Mortier told the Business Post.
