Largest asset manager in Europe claims hype around artificial intelligence is making it difficult to get a true valuation of companies
The surge in valuations for companies with exposure to artificial intelligence is developing into the equivalent of the dotcom bubble, which burst in the late 1990s, a leading investment analyst has warned.
Vincent Mortier, group chief investment officer at Amundi, the French asset manager, said the “hype” around AI-related stocks had all the characteristics of a bubble that could already be over $1.2 trillion in size. “Financial markets today remind me of 1999/2000 when it was difficult to justify some company valuations and we were told to forget about traditional metrics. Today, I see the same in lots of segments such as artificial intelligence, where people think it’s normal for a company to have a price earnings multiple of 200 times because the prospects are huge,” Mortier told the Business Post.
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