‘How many canaries have we killed in the coal mine?’ — Wall Street debates if the latest AI bubble warnings are another head fake or the real thing

From the source

Since the advent of OpenAI’s ChatGPT in late 2022, the list of possible indicators that the AI boom was about to go bust is long and keeps getting longer, leaving Wall Street asking each time if the end is finally near. For instance, whenever AI chip giant Nvidia saw its market cap cross the $2 trillion, $3 trillion, $4 trillion or $5 trillion milestones, bears sounded the alarm. The borrowing binge by AI hyperscalers and their astronomical capital spending plans raised more red flags. The DeepSeek shock in early 2025 triggered another freakout as the Chinese AI model stirred doubts about the necessity of all that capex. Also last year, OpenAI CEO Sam Altman’s admission that an AI bubble exists and Michael Burry’s bearish bets represented more red flags. This year, the Iran war, the South Korean stock market’s meltdown, and “circular” funding deals between AI companies added to the fears. But earnings continued to soar, and stocks eventually rebounded to set record high after record…

BestAIBroker analysis

• Finance-aware sentiment: slightly negative (-0.20 on a -1 to +1 scale).
• Event classification: OTHER.
• Market importance score: 39/100, weighting entity relevance, source credibility, multi-outlet coverage and recency.
• Symbols referenced: AI.