ECB warns of 'bubble' in AI stocks as funds deplete cash buffers

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The European Central Bank warned on Wednesday about a “bubble” in stocks related to artificial intelligence (AI), which could burst abruptly if investors’ rosy expectations are not met. The warning came as part of the ECB’s twice-yearly Financial Stability Review, a laundry list of risks ranging from wars and tariffs to cracks in the plumbing of the banking system. “This concentration among a few large firms raises concerns over the possibility of an AI-related asset price bubble,” the ECB said.