Asger Risom
A Bank of America survey shows a record share of fund managers believe companies are overinvesting in AI, with many warning that soaring expenditures could inflate a bubble or even spark a credit crisis.
A fresh warning sign is flashing for the AI industry — and this time it’s coming from Wall Street.
Investors are growing increasingly uneasy about the enormous sums big tech companies are pouring into artificial intelligence infrastructure, stoking fears that the sector may be overheating.
Amazon’s share price dropped sharply earlier this month after it announced plans to spend $200 billion this year on AI. Microsoft also saw its stock slide amid concerns that returns on AI investments could take longer than expected to materialize.
In total, major tech firms are projected to spend a record $650 billion on AI in 2026 alone.
Survey flags bubble fears
According to a new Bank of America survey of 162 fund managers, 35 percent said corporations are overinvesting in capital expenditures — the highest level recorded in the survey’s 20-year history. Only 20 percent said they supported increasing such spending.
A quarter of respondents identified a potential AI bubble as the biggest risk facing markets today — ranking it above inflation and geopolitical tensions. Meanwhile, 30 percent said AI-related expenditures are the most likely trigger for a future credit crisis.
The findings suggest a growing belief among institutional investors that companies may be stretching themselves too thin as they race to build data centers, secure chips, and expand AI capabilities.
Tech leaders push back
Industry executives, however, continue to defend the spending spree.
Speaking at the AI Summit in New Delhi, Google CEO Sundar Pichai described the current moment as “extraordinary” and “transformational,” comparing the AI boom to the industrial revolution — “but ten times faster and ten times larger.”
Nvidia CEO Jensen Huang has also sought to reassure investors, arguing that AI investment is still in its early stages.
Analysts remain cautious.
“I would say clients are justified in being worried [about an AI bubble] because there’s a lot of uncertainty,” Orbis Investments advisor Ben Preston told the Financial Times.
Whether the surge in spending marks the dawn of a productivity revolution — or the peak of an unsustainable boom — remains an open question. For now, markets appear increasingly nervous about what comes next.
Sources: Futurism, Bank of America survey, Financial Times
