{"id":187993,"date":"2025-10-09T12:05:16","date_gmt":"2025-10-09T12:05:16","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/187993\/"},"modified":"2025-10-09T12:05:16","modified_gmt":"2025-10-09T12:05:16","slug":"is-the-ai-bubble-about-to-burst-jp-morgan-boss-joins-dire-warnings-from-boe-and-imf-about-risk-of-stock-market-crunch","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/187993\/","title":{"rendered":"Is the AI bubble about to burst? JP Morgan boss joins dire warnings from BoE and IMF about risk of stock market crunch"},"content":{"rendered":"

By JAMES TAPSFIELD, UK POLITICAL EDITOR<\/a> <\/p>\n

Published: 04:24 EDT, 9 October 2025 | Updated: 06:33 EDT, 9 October 2025 <\/p>\n

The boss of JP Morgan has joined warnings that an AI-driven stock market<\/a> bubble could be about to burst.<\/p>\n

Jamie Dimon said he was ‘far more worried than others’ about the risk of a serious correction – suggesting it could even happen in the next six months.<\/p>\n

The grim message, in an interview with the BBC<\/a>, came after the Bank of England<\/a> and IMF<\/a> both raised concerns about inflated valuations.<\/p>\n

They made comparisons to the Dotcom bubble, suggesting any sudden shift in sentiment could hammer global growth.\u00a0\u00a0<\/p>\n

Mr Dimon, who runs the US’s biggest bank, said a ‘lot of things’ were creating an atmosphere of uncertainty.<\/p>\n

\"Jamie <\/p>\n

Jamie Dimon said he was ‘far more worried than others’ about the risk of a serious correction – suggesting it could even happen in the next six months<\/p>\n

He pointed to risk factors including geopolitical volatility, fiscal strains on governments, and a remilitarisation drive.<\/p>\n

‘All these things cause a lot of issues that we don’t know how to answer,’ he said.<\/p>\n

‘So I say the level of uncertainty should be higher in most people’s minds than what I would call normal.’<\/p>\n

He suggested a correction could happen within the next six months to two years. ‘I am far more worried about that than others,’ he said.<\/p>\n

Much of the surge in tech stock values has been driven by expectations that AI will revolutionise the economy and society.<\/p>\n

But Mr Dimon said it was ‘probable’ that some investors would lose money.<\/p>\n

‘The way I look at it is AI is real, AI in total will pay off,’ he said.<\/p>\n

‘Just like cars in total paid off, and TVs in total paid off, but most people involved in them didn’t do well.’<\/p>\n

He added some of the money being invested in AI would ‘probably be lost’.<\/p>\n

Yesterday the Bank of England’s\u00a0 Financial Policy Committee (FPC) drew comparisons between the current stock market and the mania for so-called ‘Dotcom’ stocks 25 years ago.<\/p>\n

And they said share valuations ‘appear stretched, particularly for technology companies focused on artificial intelligence’.<\/p>\n

The Bank said the trend left equity markets ‘particularly exposed should expectations around the impact of AI become less optimistic’.<\/p>\n

AI-focused tech stocks are concentrated in US markets but many investors around the world have piled in and could be exposed to any downturn.<\/p>\n

Bank officials fear stock markets across the globe could also be caught up in any shock, which could also see lending seize up.<\/p>\n

Meanwhile, the head of the International Monetary Fund Kristalina Georgieva said in a speech yesterday: ‘Today’s valuations are heading toward levels we saw during the bullishness about the internet 25 years ago.<\/p>\n

‘If a sharp correction were to occur, tighter financial conditions could drag down world growth, expose vulnerabilities, and make life especially tough for developing countries.’<\/p>\n

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