AI Rally Shows Cracks as Investors Warn of a Possible Bubble

New York, Nov. 21, 2025 — The recent surge in artificial intelligence–related stocks in the United States is showing signs of strain, prompting investors to question whether the AI boom may be turning into a speculative bubble. While major AI companies have reported strong earnings, several high-flying names have struggled to maintain their momentum, leading to sharp pullbacks in stock prices and heightened caution among market participants.

Concerns are also emerging in the bond and debt markets, as some firms take on large amounts of borrowing to expand AI infrastructure. Analysts warn that relying heavily on debt to fuel growth could pose risks if profits or demand fail to meet expectations. Valuation indicators suggest the market may be stretched, with stock prices rising faster than fundamentals, echoing early warning signs from past tech and speculative manias.

Despite these concerns, investor sentiment remains more measured than in previous bubbles. Retail optimism has declined slightly, and the market has yet to exhibit the extreme frenzy that typically precedes major corrections. Experts note that while the AI rally carries risks, it may also reflect genuine innovation and transformative potential in areas such as machine learning, automation and computing infrastructure.

The challenge for investors is distinguishing between companies with sustainable business models and those riding speculative hype. As the market continues to adjust, careful analysis and risk management are being emphasized as essential strategies to navigate the uncertainties surrounding AI stocks.