Bank of America states that the Nasdaq 100 Index is approaching bubble levels

Glonghui, June 23 — Analysts at Bank of America stated that although risks are accumulating around the Nasdaq 100 rally, the AI theme may still have further room to expand. The team's bubble risk indicator shows that the Nasdaq 100 reading is slightly below 0.8, a level that typically signals heightened short-term tail risks, while tech stocks and semiconductor stocks have already demonstrated extreme bubble-like price movements. The Bank of America team, including Riddhi Prasad, wrote that the AI bubble may take several years to fully form; however, history suggests their indicator helps identify phases of pullbacks.