Is AI euphoria an overlooked risk for markets beyond geopolitical shocks

Global AI stocks and ETFs have surged sharply over the past year, with Micron up nearly 900% and Intel up 565%, driving the Nasdaq 12% higher YTD and lifting markets in Korea and Taiwan over 90%. Experts warn the AI trade is running ahead of fundamentals, with valuations pricing in near-perfect futures while high capex, chip shortages, and lengthy monetisation timelines remain underappreciated risks. Investors are advised to shift from speculative hype to fundamental valuation, prioritising businesses with durable cash flows over narrative-driven re-ratings.