US stock indexes recently hit fresh highs driven by artificial intelligence,
pushing many tech market caps sharply higher and intensifying debate over an 'AI
bubble'. Market participants say the rally's durability depends on sustained AI
build-out, corporate profitability and macro fundamentals; a US slowdown that
curbs corporate spending on AI infrastructure is a clear downside risk. Several
strategists say the market lacks classic end-of-bull triggers—widespread
speculative mania, broad margin deterioration or renewed Fed rate hikes—but
elevated valuations, concentrated gains and very high earnings expectations
leave the AI-driven rally in a fragile boom.
