AI Stock Surge Faces Skepticism as Analysts Predict Market Correction

Experts warn of AI stock overvaluation. Investors question if the tech boom is a bubble ready to burst.

September 15, 2026 One Min Read

POLICY WIRE — New York, United States — A growing number of financial analysts are suggesting that the AI-driven surge in U.S. stock markets may be showing signs of a potential downturn.

John Higgins, chief economic adviser at Capital Economics, highlighted that the current phase of AI investment may be nearing its peak, with the firm estimating a possible collapse in the AI market by 2027. The firm also predicts a significant drop in the S&P 500 index, potentially falling more than 20% from its recent high.

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Goldman Sachs forecasts global spending on AI projects to reach $1 trillion in 2026, with $581 billion allocated to the U.S. This surge has fueled strong stock performance over the past two years. However, economists like Kenneth R. French from Dartmouth College caution that it is difficult to determine when a speculative bubble will burst. Meanwhile, concerns about AI’s societal impact are intensifying, even as the technology continues to drive corporate growth.

Reporting by Policy-Wire (PW)

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