BoE warns of AI bubble in equity markets
Record of latest FPC meeting compares ‘stretched’ stock values today to levels before dotcom crash
A bubble may be forming in global equity markets as companies scale up investment in artificial intelligence, the Bank of England’s financial policy committee (FPC) has warned.
In the record of its latest meeting, published today (October 8), the FPC noted that global stock valuations had increased since Q2 2025, driven partly by strong earnings from US technology firms during that quarter.
“Equity valuations appeared stretched, particularly in backward-looking metrics in the US. For example, the
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