Europecentral banksWarning.AIRelatedstockRisk of "bubbles".The bubble could burst suddenly if investors' optimistic expectations are dashed.
The European Central Bank is understood to have issued the warning in its biannual financial stability report released on Wednesday. The report lists a variety of risks, including war, tariffs and banking system fragility.
The ECB noted that the stock market, theIn particular, the U.S. stock market has become increasingly reliant on a handful of companies seen as beneficiaries of the AI boom.
The ECB said, "This concentration of a few large companies raises concerns about the possibility of an AI-related asset price bubble. Moreover, against the backdrop of deep consolidation in global equity markets, negative global spillovers could be triggered if earnings expectations for these companies fall short."