ChatGPT Warns S&P 500 Could Crash 50% as AI Capex Tops $1.1 Trillion
Updated
Updated · Yahoo Finance UK · Aug 29
ChatGPT Warns S&P 500 Could Crash 50% as AI Capex Tops $1.1 Trillion
2 articles · Updated · Yahoo Finance UK · Aug 29
Summary
A 50% S&P 500 drop is possible if the AI boom turns into a bubble, ChatGPT said, while stressing that such a crash is not a certainty.
More than $1.1 trillion has already been spent by Google, Amazon, Microsoft and Meta since the AI boom began, with about $745 billion planned for 2026 alone.
Almost 40% of the S&P 500 is now in U.S. tech stocks, and some estimates put AI-linked exposure near 50%, leaving the broader index vulnerable if valuations crack.
Nvidia's Q2 revenue more than doubled to $96.2 billion and it forecast another 70% increase next year, supporting the view that AI leaders still have real earnings unlike many dotcom-era firms.
The report argues the bigger risk is that soaring spending, inflation or higher rates could make returns harder to justify, pushing investors toward cheaper sectors such as UK banks.