Is the Artificial Intelligence industry in an economic bubble?

Fears of an AI-driven economic bubble are rising after a sharp drop in US tech stocks, despite strong earnings from Nvidia, a key player in the AI industry.

Wall Street gains reversed within a day, with the Nasdaq falling 2.2%, as investors questioned the sustainability of current spending on AI infrastructure.

Nvidia, now valued at $4.4tn, continues to benefit from high demand for its chips, but analysts warn that firms investing heavily in AI may be overextending.

Concerns are mounting that this rapid growth mirrors past bubbles, driven more by hype than sustainable returns.

Is AI in a bubble?