Global Stock Markets Surge $28.6 Trillion on AI Boom Amid Bubble Concerns

Global stock markets have surged by $28.6 trillion since early April, driven largely by enthusiasm around artificial intelligence (AI) investments, raising concerns about a potential market bubble reminiscent of the dot-com era. High-profile figures like JPMorgan CEO Jamie Dimon and regulatory bodies including the IMF, Bank of England, and Federal Reserve have issued warnings about inflated asset valuations that could lead to a sharp market correction. Surveys such as Bank of America's Global Fund Manager Survey show investor exuberance at peak levels, with AI-related stocks identified as a significant tail risk. Despite widespread alarm, some analysts caution that market corrections are normal and that bull markets can continue longer than expected, advising investors against trying to time the market. The AI boom is characterized by massive capital influx, particularly into companies like Nvidia and tech giants expanding AI infrastructure, but profitability remains uncertain, fueling debate about the sustainability of current valuations. This mix of soaring investments, regulatory warnings, and historical parallels underscores the tension between optimism and caution in the current AI-driven market environment.