AI stocks 'giant bubble' claims... valuation judgment deferred

AllianceDAO co-founder QwQiao said AI-related equity trading is “almost certainly a massive bubble,” while cautioning that fair value is hard to pin down because it requires forecasting AI innovation alongside supply chains, credit markets, politics and macro conditions. He argued that charts, sentiment and investor positioning all point to froth in AI trades, and warned prices could overshoot to the downside when the bubble deflates. QwQiao did not commit to a view on whether current AI stock prices are expensive or cheap. The comments add to a growing debate over how much of the AI rally is fundamentals versus speculation. What to watch next is whether positioning unwinds and sentiment cools, and whether supply-chain and credit conditions validate or undercut the trade.