AI Stocks Raise Bubble Concerns Amid Investment Uncertainty
A recent survey by The Motley Fool reveals that 41% of investors suspect that artificial intelligence (AI) stock prices have reached speculative levels, while only 26% believe current valuations are sustainable. This skepticism stems from the remarkably high returns generated by AI stocks, prompting fears of a potential bubble in the sector.
Among the companies positioned strongly to withstand a downturn are Nvidia, ASML, and Amazon. Nvidia, known for its high-demand graphics processing units (GPUs), reported a net cash position of $52.1 billion by the end of October 2023. ASML, the only manufacturer of extreme ultraviolet lithography machines, had a net cash position of 2.4 billion euros as of Q3 2023. Amazon’s cloud computing platform, AWS, generated $93.1 billion in revenue through Q3 2025, bolstered by $67 billion in cash reserves.
With significant financial strength, these companies are expected to endure potential volatility in the AI market, providing a sense of security amid concerns of an impending bubble bursting.
