Bank of England on AI mania: ‘Stretched’ stock valuations ‘comparable to the peak of the dotcom bubble’

FortuneWednesday, October 8, 2025 at 5:58:24 PM
Bank of England on AI mania: ‘Stretched’ stock valuations ‘comparable to the peak of the dotcom bubble’
The Bank of England has raised concerns about the current state of stock valuations, suggesting they are 'stretched' and reminiscent of the peak of the dotcom bubble. This is particularly alarming as the top five companies in the S&P 500 now hold nearly 30% of the market share, a record high in the last 50 years. Such concentration raises questions about market stability and the potential for a correction, making it crucial for investors to be cautious.
— via World Pulse Now AI Editorial System

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Bank of England warns of AI bubble risk
NegativeFinancial Markets
The Bank of England has issued a warning regarding the potential risks associated with an artificial intelligence (AI) valuation bubble, noting that stock price valuations in the US are currently at their most stretched levels since the dotcom bubble burst. This alarming trend raises concerns about the sustainability of these inflated valuations.