Investors’ rush into artificial intelligence stocks this year has overplayed the near-term potential of the technology, raising the risks of a “correction” in share prices, asset management powerhouse Vanguard has warned.
Joe Davis, Vanguard’s chief economist, said investors have gone too far in their bets on AI’s potential, even if the technology proves to have similar effects to the personal computer, whose adoption since the 1980s revolutionised productivity and jobs.
The cautious remarks from the world’s second-largest asset manager add to the fierce debate among investors over whether groups that rode the AI wave are overvalued after huge gains in recent months.