A sharp selloff in major indexes has renewed scrutiny of whether artificial intelligence is inflating a market bubble. In a point-counterpoint, one side argues surging AI adoption and robust profits at mega-cap tech justify premium valuations, while the other warns that stretched multiples, heavy capital spending and extreme market concentration leave investors vulnerable to reversals. Proponents cite secular productivity gains and rising cash flows; skeptics note the cyclicality of semiconductors, dependence on low rates and echoes of past tech manias. The debate unfolds as the Dow fell 1.9%, the Nasdaq 3.49% and the S&P 500 2.71%, underscoring how sentiment around AI leaders can sway broader markets.
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