Market analysts warn of growing $12trn AI bubble

Seven mega-cap tech stocks now account for over 30 per cent of the entire value of the $40 trillion US stock market

Jensen Huang, co-founder and chief executive officer of Nvidia, unveiling a new batch of products and services tied to artificial intelligence. Picture: I-Hwa Cheng/Bloomberg

A potential stock market bubble linked to mega-cap tech stocks continues to grow and is already more than $12 trillion in size, leading market analysts have warned.

The warnings come as the global stock markets recorded their strongest first quarter performance in five years, driven by growing hype around artificial intelligence and expectations of interest rate cuts later this year.

The S&P 500, the US benchmark index, has closed at a record high on 22 ...