Yahoo! Finance, Levin Stamm and Sagarika Jaisinghani
The head of market strategy at a London investment bank has a stark warning for investors: the artificial-intelligence trade may soon be over in what could trigger the most severe market crash since the global financial crisis.
Equities have powered to record levels across the globe this year, fueled in part by optimism over surging spending on AI infrastructure. But Panmure Liberum’s Joachim Klement said his base case is for that trade to disintegrate as soon as 2027, sending stocks sharply lower.
“My core conviction is that the AI bubble will either burst in 2027 or in 2028, so sometime in the next two years,” Klement said in an interview. Hyperscalers’ free cash flows are largely depleted, while the cost of debt is rising quickly and becoming prohibitive for these firms, he said.
Klement’s 2027 year-end target of 5,000 points for the S&P 500 implies 36% downside from current levels. That’s by far the most bearish of seven other strategists tracked by Bloomberg, who on average look for potential upside of 14%. Klement sees Europe’s Stoxx 600 falling to 430 points, more than 30% below current levels.
Liga al artículo: https://uk.finance.yahoo.com/news/ai-bubble-risks-worst-p-061638441.html
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