Two prominent Shanghai-based hedge funds have warned in investor letters that the global rally in AI-related stocks has entered a "super bubble" detached from fundamentals, and that the trigger for its collapse has already appeared. Bloomberg reported the warnings on June 26, 2026, followed by several other outlets.
June 26, 2026 · Hedge Fund Warning
Chinese Hedge Funds Warn the AI "Super Bubble" Is Ready to Burst
Two prominent Chinese funds say the global rally in AI stocks has detached from fundamentals — and that the "collapse point may not be far away," with the trigger already in sight.
80%+
Potential fall some Chinese AI infrastructure stocks could face
100%+
Year-to-date returns posted by some Asian hedge funds on AI plays
2
Funds publicly calling AI a "super bubble" in investor letters
Assets Under Management — The Voices Behind the Warning
Column heights scaled to assets under management
Wealspring Asset
Global AI stocks are a "super bubble" and the "collapse point may not be far away." Founder Yang Dong called the 2007 market top. Likens today to China's 2015 "brainless buying."
Shanghai Banxia
"The trigger for the AI bubble to burst has already appeared" — citing pressure on the fast-growing revenue of AI developer Anthropic as concrete evidence.
Rally Continues ↑
Earnings growth and infrastructure spending still support the market. "Bubble talk always exists, but the rally continues" — strong hedge-fund returns suggest it remains unabated.
Valuations Detached ↓
A demand boom has been overvalued and detached from fundamentals. Chinese AI infrastructure firms lack a moat, run ordinary models, and need constant capital spending.
What sets this warning apart: a specific U.S. AI company's revenue pressure named as the trigger.
Because the claims come from investor letters, specific stock prices and price-earnings ratios were not disclosed. The real impact will depend on future earnings and capital-spending trends.
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