The ECB vice-president warned that the AI-driven surge in asset valuations — including spot and forward P/Es not seen for a long time — makes equities vulnerable to a pullback. He said exposures to the AI theme are large and rising and must be closely monitored, as massive flows into the sector create a meaningful repricing risk for the stock market. The remarks echo other central bankers, regulators and investors who view leading AI firms as potentially overvalued and warn that a sharp fall in

The ECB vice-president warned that the AI-driven surge in asset valuations — including spot and forward P/Es not seen for a long time — makes equities vulnerable to a pullback. He said exposures to the AI theme are large and rising and must be closely monitored, as massive flows into the sector create a meaningful repricing risk for the stock market. The remarks echo other central bankers, regulators and investors who view leading AI firms as potentially overvalued and warn that a sharp fall in their valuations could trigger a broader global equity correction; ECB President Lagarde said a correction is entirely possible.