Wealspring Asset and Banxia Investment, two prominent Chinese hedge funds, have issued warnings that the global artificial intelligence stock boom has inflated into a "super-bubble" poised for imminent collapse, drawing comparisons to the 2015 market frenzy that saw indiscriminate equity buying.
Wealspring Asset characterized the current environment as a super-bubble and cautioned that the point of rupture "may be very close already," predicting that some of the sector's most popular companies could lose more than 80 percent of their valuation. Banxia Investment argues that initial signs of deflation have already emerged, citing deceleration in revenue growth expectations for Anthropic as a key indicator of the turning point.
The warnings carry weight given the sector's explosive gains this year. The Chinese AI company index has surged more than 35 percent year-to-date, with individual sector leaders including SK Hynix and Micron tripling in value over the same period. The positioning reflects growing skepticism among sophisticated market participants about the sustainability of valuations that have decoupled significantly from near-term earnings realities.