From Yahoo Finance: 2025-06-17 16:47:00

AI stocks have skyrocketed since November 2022, with Nvidia up 761% and Palantir up 604%. Experts caution about high valuations and geopolitical risks like China-Taiwan tensions disrupting the AI supply chain.

While many believe AI will transform the economy, concerns about overvaluation persist. High PE ratios for AI stocks could lead to underperformance if earnings fail to meet expectations.

Goldman Sachs’ Jim Covello warns of overestimating AI capabilities, potentially leading to disappointment. Concerns about mammoth spending on AI infrastructure and investing in the wrong stocks loom large.

Rising long-term Treasury yields could impact growth stock performance. Taiwan Semiconductor, a key player in AI development, faces supply chain disruptions if conflict erupts in the Taiwan Strait.

Foreign investors pulling back from US Treasury bonds and geopolitical tensions could impact AI stocks. As long-term Treasury yields rise, growth stocks may suffer, and risky assets lose appeal.



Read more at Yahoo Finance: The 5 arguments against continued dominance for AI stocks