AI isn’t in a bubble—the cash (and the hype) are real, these analysts say

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• Despite warnings of an AI bubble, some analysts are arguing that AI demand and growth remain strong, with tech sector investment driven by real cash flows, not debt. Current valuations are not as extreme as the dotcom era, and even a correction is unlikely to trigger a U.S. recession, they say.

The S&P 500 hit a new all-time high Wednesday (up 0.58% on the day), driven as usual by tech stocks (the Nasdaq Composite rose 1.12%), despite the fact that both the IMF and the Bank of England warned that AI might be a bubble and stocks are due for a sharp correction.