Citigroup believes that the price gains seen on the stock markets during the current artificial‑intelligence (AI) boom may persist for some time longer. “The AI bubble isn’t over yet” said Dirk Willer, Citigroup’s head of macroeconomics and asset allocation, on the “Handelsblatt Invest” podcast on Wednesday.
Willer, a veteran Wall Street analyst who witnessed the dot‑com bubble in the early 2000s, is convinced that this time will also bring over‑exuberance. “The more impressive the technology, the more you over‑invest” he explained.
Given the hefty AI budgets of major U.S. tech giants, it’s understandable that investors want to diversify more heavily. However, Willer cautions that if a tech bubble were to burst, “almost every asset class would decline”.
