AI Bubble Concern More Than Doubles to 23% Since December
A February Bank of America survey of credit investors reveals that the risk of an "AI bubble" has become their primary concern for the first time. Among investment-grade respondents, 23% identified soaring AI valuations as the biggest market threat, a figure that has more than doubled from just 9% in the previous survey from December. This sharp rise in anxiety has pushed AI risk ahead of other major concerns that previously dominated investor sentiment, such as a broader credit market bubble or a global economic recession.
The survey, which included 54 of the bank's high-grade and high-yield clients like insurance companies, pension funds, and hedge funds, highlights a decisive shift in perceived market vulnerabilities. According to Bank of America's strategists, geopolitical issues and central bank policy errors have receded as primary worries for this cohort.
Investors Expect $285 Billion Tech Bond Wave Despite Fears
While investors are increasingly wary of an asset bubble, their actions suggest a continued belief in the necessity of AI-related capital spending. The same survey participants raised their expectations for bond issuance from "hyperscalers"—large-scale cloud service providers—to $285 billion for the year. This marks a substantial increase from their $210 billion forecast in December, signaling an anticipation of massive investment in AI infrastructure.
This creates a clear distinction in investor thinking: the fear is centered on asset prices, not the technology's transformative power. Only 10% of survey respondents cited AI-driven corporate淘汰 (obsolescence) as their biggest concern. For now, strategists note that strong fund inflows into credit are the main factor supporting tight credit spreads, providing a powerful enough force to counteract immediate weakness from the perceived AI bubble risk.
