“AI Bubble” Named Stock Market Taboo Phrase of 2024 Amid Soaring Valuations and Investor Concerns

“AI Bubble” Named Stock Market Taboo Phrase of 2024 Amid Soaring Valuations and Investor Concerns

(IN BRIEF) The Austrian financial community has named “AI bubble” as the stock market taboo phrase of 2024, reflecting concerns over the rapid rise in valuations of companies linked to artificial intelligence (AI). While some warn that the high costs and speculative nature of AI investments resemble a classic bubble, others argue that today’s leading AI companies have established, profitable business models, distinguishing them from the dot-com era. Experts advise cautious, diversified, long-term investment strategies to mitigate risks while capitalizing on AI trends. The choice of “AI bubble” underscores the debate over whether the current AI-driven market surge is sustainable or speculative.

(PRESS RELEASE) VIENNA, 5-Dec-2024 — /EuropaWire/ — The Austrian financial market community has chosen “AI bubble” as the stock market taboo phrase of 2024, reflecting growing concerns over the rapid rise in valuations of companies tied to artificial intelligence (AI). While the AI-driven investment trend surged in 2024, analysts, investors, and academics debate whether the momentum could eventually lead to a collapse akin to previous market bubbles.

Diverging Opinions on the AI Investment Boom

Asset manager Wolfgang Matejka warned of the risks:
“AI investments demand enormous sums with no guaranteed return, fitting the classic definition of a bubble.”

However, Manuel Schleifer, Senior Equity Market Strategist at Raiffeisen Bank International AG, noted that the current scenario differs from the dot-com era:
“While market valuations resemble those of the dot-com bubble, today’s leading players are profitable companies with established business models. Expectations are high but grounded in substance.”

Advice for Cautious Investors

Christoph Boschan, CEO of the Vienna Stock Exchange, urged private investors to adopt a measured approach:
“Hypes attract attention and money, but a disciplined, long-term strategy with global diversification remains the safest path. By investing globally, you’ll naturally gain exposure to trends like AI without overexposure to risk.”

The Debate on Sustainability

As the AI revolution continues to dominate investment conversations, the discussion surrounding its sustainability grows louder. While some view the trend as a speculative frenzy, others see it as a reflection of tangible innovation driving market optimism.

By naming “AI bubble” the taboo phrase of the year, the Austrian financial community highlights both the opportunities and the risks associated with the current AI investment craze.

About the stock market taboo word

Every year since 2017, the Vienna Stock Exchange has asked the domestic financial community to nominate the Austrian stock market taboo word of the year. The jury’s decision is based primarily on the topicality, relevance and linguistic significance of the words. This year’s eighth stock market taboo word follows last year’s winner “stagflation”, which replaced “excess profits tax” (2022). Before that, the “specter of inflation” (2021) was a stock market taboo word. In the years before that, “corona-related” (2020), “Brexit” (2019), “punitive tariffs” (2018) and “negative interest rates” (2017) prevailed.

About the Vienna Stock Exchange

As the central infrastructure provider in the region, Wiener Börse AG opens doors to global markets. It unites the stock exchanges in Vienna and Prague. Listed companies benefit from maximum liquidity there, and as the market leader it offers investors fast and inexpensive trading. Wiener Börse collects and distributes price data and calculates the most important indices for a dozen markets in the region. Thanks to its unique know-how, the national exchanges in Budapest, Ljubljana and Zagreb also rely on the IT services of the Vienna Stock Exchange. In addition, it is involved in other energy exchanges and clearing houses in the region.

Disclaimer

This press release may contain certain forward-looking statements and projections based on assumptions current at the date of this press release. We assume no liability whatsoever that these forward-looking statements will occur. Furthermore, we expressly point out that this press release does not serve as a basis for an investment decision and constitutes neither an invitation to buy nor an investment recommendation by Wiener Börse AG. The information in this press release is provided without guarantee.

Media Contacts:

Alexander Wastl
Corporate Communications & Marketing
alexander.wastl​(a)​wienerboerse.at
+43 1 531 65-153

Julia Resch
Head of Corporate Communications & Marketing, Spokesperson
julia.resch​(a)​​wienerboerse.at
+43 1 531 65-186

SOURCE: Wiener Börse AG