AI Hype Poses Big Market Risk, JPMorgan Asset Management Says

JPMorgan Asset Management has warned that the hype surrounding artificial intelligence (AI) could pose a significant risk to the global stock market rally. The asset management firm believes that disappointing earnings from AI companies would be a bigger threat to the tech-driven market than ongoing geopolitical tensions. The article highlights that the rapid rise of AI-related stocks has fueled a tech-driven rally in the global market. However, JPMorgan Asset Management cautions that the high expectations and valuations of these AI companies could lead to a significant market correction if their earnings fail to meet the hype. The asset management firm's statement suggests that investors should approach the AI market with caution and closely monitor the financial performance of these companies. The article emphasizes the need for a balanced and prudent approach to investing in the AI sector, as the potential risks associated with the hype could have a significant impact on the broader market.