Practical: AI & Business News Goldman Sachs & Morgan Stanley CEOs Warn: “AI Bubble” Could Trigger 15% Stock Market Crash
Nov 5, 2025
CEOs from leading financial firms warn of a potential 10-15% stock market pullback, citing dangerous AI hype inflating valuations. They draw parallels to the dot-com era and stress that investors may be irrationally pricing AI companies. While a correction could be healthy for long-term growth, the concentration of gains among a few tech giants raises vulnerability. Despite the caution, there are signs that AI has the potential to significantly boost the economy in the long run. Investors should focus on real value and substantive innovation.
AI Snips
Chapters
Transcript
Episode notes
Top Banks Flag An AI-Fueled Pullback
- Goldman Sachs and Morgan Stanley CEOs warn a 10–15% market pullback is possible as AI hype inflates valuations.
- They argue investor enthusiasm has outpaced fundamentals, creating froth similar to past tech cycles.
Gains Concentrated In A Few Superstars
- AI winners have driven outsized gains, with names like NVIDIA and Microsoft leading the rally.
- The market often prices transformation irrationally, creating stretched valuations and narrow leadership.
Use Corrections To Reposition Portfolios
- If you're investing, focus on companies actually applying AI to core operations rather than marketing it.
- Use pullbacks to reposition, rebalance, and find long-term value when volatility appears.