Citigroup believes that the price gains seen on the markets amid the current artificial intelligence (AI) boom could continue for some time. “The AI bubble is not over yet” said Dirk Willer, head of macroeconomics and asset allocation at Citigroup, during the “Handelsblatt Invest” podcast on Wednesday.
Willer, a long‑time Wall Street veteran who witnessed the dotcom crash at the start of the 2000s in New York, feels that a surge of excesses is again likely. “The more impressive the technology, the more it gets over‑invested” he explained.
Given the huge AI spending by major U.S. tech firms, he acknowledges that investors are seeking greater diversification. Still, Willer cautions that “if a tech bubble bursts, almost all assets will fall”.
