Lates News

A market strategy head at a London investment bank has issued a stark warning to investors: the investment boom surrounding AI could soon come to an end and may trigger the worst market crash since the global financial crisis. This year, global stock markets have repeatedly hit record highs, driven by optimism over surging spending on AI infrastructure. But Joachim Klement of Panmure Liberum said his base case is that this investment boom could unravel as early as 2027, causing share prices to fall sharply. Klement said: "My central view is that the AI bubble will burst in 2027 or 2028 at some point within the next two years." He pointed out that hyperscalers' free cash flow has been largely exhausted, while debt costs are rising rapidly to levels these companies can hardly bear. Klement set a year-end 2027 target of 5,000 for the S&P 500 Index, implying 36% downside from current levels.