First cracks in AI bubble rattle India's proxy stock investors. How worried should you be?
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The global artificial intelligence (AI) trade, which powered stock markets to record highs over the past year, is beginning to show its first real cracks. For the first time in months, analysts have increasingly turned cautious over the valuations and the possibility of a pullback. CEOs of Morgan Stanley and Goldman Sachs cautioned that equity markets could be heading toward a drawdown, underscoring concerns about elevated tech valuations. The first cracks surfaced when a sharp sell-off in global tech stocks earlier this week, led by Nvidia and Palantir Technologies, has rattled investors worldwide. The S&P 500 and Nasdaq Composite both suffered their biggest one-day declines in nearly a month. Nvidia, which recently became the world’s most valuable company by crossing a $5 trillion market cap, has fallen about 5% in the last five days. According to Kotak Equities, the debate over an AI bubble is growing louder. "Most observers a...