Amundi Report Finds AI Stocks Lack Bubble Dynamics

The Amundi Investment Institute released a report stating that the current rally in artificial intelligence stocks does not exhibit the characteristics of a late-stage speculative bubble. While researchers identified similarities between the current trend and the early dot-com cycle of 1995–1997, they noted a lack of the explosive valuation dynamics typically observed before a bubble bursts.

Despite this finding, the institute warned of significant concentration risks. A small group of AI-related stocks is driving a disproportionate share of market returns, with AI-linked stocks gaining 115.2 percent between 2021 and 2026 and outperforming the broader S&P 500.

Amundi Investment Institute advises investors to focus on risk management rather than attempting to time a market correction. The report suggests prioritizing the monitoring of capital expenditure trends and the sustainability of earnings to navigate the current market environment.