Joachim Klement, market strategist at Panmure Liberum in London, warned the
AI-driven investment boom could unwind as early as 2027–28 and spark the worst
S&P 500 sell-off since the 2008 financial crisis. "My core view is that the AI
bubble will burst in 2027 or 2028 — sometime within the next two years," he
said, citing hyperscalers' free cash flow being effectively depleted and rapidly
rising borrowing costs as key vulnerabilities. Klement sets an end-2027 S&P 500
target of 5,000, implying roughly a 36% drop from current levels.
