17 Sep 2025 | 5 Mins Read

Jefferies analyst warns of AI stock market bubble

Flipitmoney

Christopher Wood, global head of equity strategy at Jefferies, warns that the US equity market's momentum, driven by the "AI capex arms race," may end in a "massive overinvestment bust" if investors ignore signs of unsustainable capital spending by tech giants, particularly the four US hyperscalers and Nvidia, who have guided $350 billion in AI-related infrastructure spending for this year.