Investment Giant Vanguard Issues AI Warning [Video]

The chief economist of American asset management giant Vanguard has warned that market players betting “wildly” on the technology are risking a correction.

According to the Financial Times, investor enthusiasm for AI equities in the US stock market has overestimated the near-term potential of the technology, risking a “correction” in share prices, chief economist Joe Davis warned.

RT reports: AI-related stocks have become key drivers behind the rise of the US stock market, with the S&P 500 index soaring by 27% this year. About one fifth of the increase comes from the contribution of Nvidia, a core chip supplier for AI, which saw its stock price rocket by nearly 180% year to date in 2024.   

Vanguard chief economist Joe Davis, however, believes investors are overplaying the short-term impact of the technology, even if AI shows similar “revolutionary”effects to the emergence of the personal computer in the 1980s, the outlet wrote on Tuesday. He claimed that in the US technology …