Panmure Liberum Head of Strategy warns that the AI bubble may burst in 2027
智通财经2026/10/08 06:51The chief market strategist at a London investment bank has issued a stern warning to investors: the investment frenzy surrounding AI may soon come to an end and could trigger the most severe market crash since the global financial crisis. Driven by optimism over surging investments in AI infrastructure, global stock markets have reached record highs this year. However, Joachim Klement of Panmure Liberum stated that his baseline prediction is that this investment boom could collapse as early as 2027, leading to a substantial drop in stock prices. "My central view is that the AI bubble will burst in 2027 or 2028—that is, at some point within the next two years," Klement noted. He pointed out that the free cash flow of hyperscale cloud providers has essentially been depleted, while debt costs are rapidly rising to unsustainable levels for these companies. Klement has set a year-end 2027 target of 5,000 points for the S&P 500 Index, implying a 36% decline from current levels.
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