Citigroup expects that the price gains seen in stock markets during the artificial intelligence (AI) boom could continue for some time. In an interview with the “Handelsblatt Invest” podcast on Wednesday, Dirk Willer, Citigroup’s head of macroeconomics and asset allocation, said, “The AI bubble isn’t over yet”.
Willer, a veteran Wall Street figure who witnessed the dotcom bubble in early 2000s New York, believes that the current surge will also bring over‑inflated valuations. “The more impressive the technology, the more we over‑invest” he explained.
Given the high AI spending by major U.S. tech firms, it is understandable that investors are looking to diversify more. However, Willer cautioned that if a tech bubble were to burst, almost all assets would decline.
