Investors split on AI bubble as spending boom faces 'gut check'

· Tech · United States

Investors are increasingly divided over whether the artificial intelligence boom is a bubble, as doubts grow about whether the billions poured into data centres will translate into sustainable profits. Bloomberg Opinion columnist John Authers said there certainly is an AI bubble and someone will "lose their shirt," while colleague Allison Schrager argued AI could drive sustained growth for possibly a century. UniSuper CIO John Pearce said the industry is closer to the top of its super cycle, and Australia's NextDC saw shares plunge 40 percent after cutting its earnings forecast on power-supply delays. CoreWeave shares have fallen 29 percent in October as credit-default swap spreads widen.

Why it matters：The debate over AI valuations now shapes credit markets, utility stocks and data-centre investment, making the answer pivotal for the global economy.

Key points

  • Authers says someone will "lose their shirt"; Schrager sees century-long growth potential.
  • NextDC shares fell 40 percent after cutting guidance.
  • CoreWeave is down 29 percent in October.

Sources (original reporting)

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