Ameriprise flags AI bubble hallmarks as earnings test capex payoff

Ameriprise flagged a new inflection point for the AI trade in the second half of 2026 as investors turn more selective on valuations.

Q2 earnings season is seen as a key test of whether AI spending returns justify capex, amid rising volatility in AI-linked leaders.

NVIDIA fell over 10% from its May 14 peak; the Philadelphia Semiconductor Index dropped over 11% from its June high.

Ameriprise counted at least four of six historical bubble signals in AI, citing narrative dominance, media saturation, concentration and rising leverage.

Recommended steps include tighter rebalancing in tax-advantaged accounts, broader diversification and cash buffers for retirees to avoid forced selling in drawdowns.