RBC BlueBay Strategist Warns AI Trade Has Become a Major Market Risk

A market-strategy warning over the AI trade intensified Thursday, with investors told that a crowded bet on artificial intelligence could become the most severe S&P 500 break since the global financial crisis if sentiment turns. The concern is not that generative AI has no value, but that equity portfolios, capital spending and credit exposure have become unusually tied to a narrow set of AI-linked winners.