Two prominent Chinese hedge funds — Wealspring Asset and Shanghai Banxia Investment — said that the rapid growth of shares of companies related to artificial intelligence could form a so-called «super bubble.»
Two prominent Chinese hedge funds — Wealspring Asset and Shanghai Banxia Investment — said that the rapid growth of shares of companies related to artificial intelligence could form a so-called «super bubble.»
In letters to investors, fund managers note that AI company valuations have become disconnected from business fundamentals, and part of the sector depends on a constant inflow of capital without a proportional increase in profits.
Wealspring Asset, founded by an investor who previously predicted the 2007 market peak, said that «the point of potential collapse may be just around the corner.» Shanghai Banxia, in turn, believes that «the trigger for the bubble to burst has already appeared,» citing the slowing growth rate of individual AI companies.
Analysts note that this is about the risk of overheating of the global artificial intelligence market, which in 2024–2026 became one of the main drivers of growth in stock indices.
At the same time, experts emphasize that this is not the market consensus: some investors continue to consider AI a long-term technological revolution, not a financial bubble.
