Wells Fargo analyst Ohsung Kwon argued in May that AI is a bubble, but one investors should ride. He wrote, "You can't own anything but AI - that's how a bubble forms," and "Don't fight the tape. Own AI," according to Fortune. He cited strong earnings-per-share momentum and capex of about $174 billion in the first quarter, up 72.8% year over year.
He named what would end the thesis: slowing growth, meaningfully accelerating core inflation, a "hot war," or other parts of the economy failing to grow enough to support capex. This is one analyst's view, offered as investment commentary, and not a prediction we endorse.
Source: Fortune