Most Investors Say AI Stocks Are in a Bubble, BofA Poll Shows (www.bloomberg.com)

A Bank of America investor survey finds most respondents believe AI-related stocks are in a bubble, signaling widespread skepticism about current valuations and exuberant market behavior. The poll reflects growing concern that investor enthusiasm—fueled by headline-making generative AI demos, concentrated gains in a few large-cap names, and active retail and ETF flows—may be outpacing the pace at which companies are converting AI promise into durable revenue and profits. That view has already shaped market moves and sentiment, and could increase volatility if investors rotate away from speculative names or tighten expectations for growth and margins. For the AI/ML community, the results matter beyond headline risk: a bubble narrative can tighten public and private capital, slow high-valuation IPOs, and pressure startups and vendors to prioritize clear business models, unit economics, and defensible moats over pure hype. It also raises the bar for measurable product impact—enterprise deployments, cost savings, and real-world benchmarks—while potentially accelerating consolidation as cautious investors favor established players. In short, while long-term demand for AI capabilities remains strong, the survey warns practitioners, founders, and investors to temper narrative-driven valuations with rigorous technical and commercial evidence.