Investors in AI should be cautious as the market may be due for a correction, according to RSM’s chief economist. Despite record highs in the S&P 500 and Nasdaq, market conditions suggest a possible shakeout. With a $100 billion investment in OpenAI by Nvidia, questions arise on the sustainability of spending. Lessons from the dot-com bubble caution against overinvestment in AI projects. While AI has potential, not all projects may succeed. Risk management is crucial in a speculative market. Timing corrections is difficult, and markets can defy overvaluation for extended periods.

Read more at Yahoo Finance: AI-driven market rally shows signs of overheating, economist warns