Bank of England warns AI stock bubble resembles dotcom peak

9 Mwezi wa kumi, 2025 Imeripotiwa na AI

The Bank of England has issued its strongest warning yet about an potential AI-driven market bubble, comparing current US stock valuations to those at the height of the 2000 dotcom era. The central bank highlighted extreme market concentration and risks of a sharp correction if investor sentiment on AI sours. Spillover effects to Britain's financial system could be material, according to the report.