Overview

• Stocks linked to artificial intelligence drove fresh records for the S&P 500 and Nasdaq this week as investors continued to buy into the AI theme despite recent volatility.
• IMF chief Kristalina Georgieva cautioned that equity prices are approaching late‑1990s levels and the Bank of England said a sharp correction risk has risen, with AI-focused valuations looking stretched.
• Scrutiny intensified after a wave of interlocking agreements, including AMD’s multi‑year plan to supply up to six gigawatts of Instinct GPUs to OpenAI starting in 2026, Nvidia’s reported up‑to‑$100 billion commitment to OpenAI, and other reported vendor‑financing style arrangements.
• Wall Street remains split, with Goldman Sachs and Bank of America saying the surge reflects strong profits and cash‑flow funding rather than a classic bubble, while Morgan Stanley’s Lisa Shalett and JPMorgan’s Jamie Dimon warn of a potential correction within the next one to two years.
• Market gains are highly concentrated, with seven mega‑caps accounting for 55% of the S&P 500’s advance since late 2022, increasing portfolio exposure if AI‑related expectations weaken.