Investors are taking a big risk by investing in artificial intelligence companies as a “price bubble” has formed in the market. In this respect informs CNBC TV channel citing David Rosenberg, economist and head of analytics company Rosenberg Research.
“There is no doubt that we are dealing with a price bubble,” the expert said.
Rosenberg said this was illustrated by the “weird” and “very long” rise in the Nasdaq 100, an index that includes technology stocks. It has increased by 18.6% in the last six months.
Rosenberg believes that the emerging dynamics do not promise anything good. The situation with the pumping of investments in the AI technology sector reminded him of the infamous dot-com boom scenario of the late 90s.
According to the economist, due to the popularity of artificial intelligence, investors began to pay less attention to the threat of recession. At the same time, the securities quotes of banks, consumer goods manufacturers and shipping companies point to this.
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