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AI bubble is coming, and there is no way out! Ashwath Damodaran explains what investors should do before the crash begins

·Economic Times·Impact 2/5 · Moderate

Renowned valuation expert Aswath Damodaran warns of an impending AI bubble that investors cannot fully avoid. He attributes the current frenzy to the launch of ChatGPT in 2022, which brought artificial intelligence into the public eye. This has led to a surge in enthusiasm for AI, fueled by advances in computing power and access to vast amounts of data. As a result, investors should prepare for potential market volatility and adjust their portfolios accordingly.

Read the source report: Economic Times →

Why it matters

Valuation expert Aswath Damodaran believes an AI bubble is inevitable, and investors cannot avoid its impact entirely. He advises investors to be cautious and prepare for the potential crash.

Market impact

Impact score
2 / 5
Market signal
Negative / risk-off
Category
Market moves
Model confidence
50%

Transmission channels

AI bubble forms→Investor caution increases→Potential crash looms→Market uncertainty rises

Likely winners & losers

Under pressure

  • AI-related stocks

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MeridStreet does not reproduce source articles. The summary and analysis above are generated by MeridStreet from public headlines and its own market model; the original reporting belongs to Economic Times. For information only — not financial advice.