Back to today’s briefing

Story perspectives

AI Market Bubble Warning: 1,200% Surge Unsustainable

11/29/2025

32 5

Summary

Story summary

GMO, led by Jeremy Grantham, reiterates a bearish stance on the AI market and warns of a potential bubble.
Ben Inker, co-head, notes AI stocks have surged more than 1,200% in the past year, signaling unsustainable valuations.
He compares the environment to the dot-com bubble and says opportunities exist in developed-market value stocks and non-US small-cap stocks, particularly in Japan.

1 of 1

Story summary

GMO, led by Jeremy Grantham, reiterates a bearish stance on the AI market and warns of a potential bubble.
Ben Inker, co-head, notes AI stocks have surged more than 1,200% in the past year, signaling unsustainable valuations.
He compares the environment to the dot-com bubble and says opportunities exist in developed-market value stocks and non-US small-cap stocks, particularly in Japan.