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Trump driving, others warning -- Jamie Dimon Warns U.S. Stocks Face Elevated Risk of Sharp Correction

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"Leading UK tech investor warns of ‘disconcerting’ signs of AI stock bubble
[...]James Anderson was an early backer of Tesla, Amazon and China’s Tencent and Alibaba, generating vast returns for Baillie Gifford’s flagship fund. Now at the Italian investment company Lingotto, Anderson said he had not seen signs of an investment bubble until recently, when the ChatGPT developer, OpenAI, and its rival Anthropic announced hefty valuation increases.

“Up until the last couple of months or so?… what surprised me in one sense is that there wasn’t really much sign of a bubble [in AI],” he told the Financial Times.

OpenAI is reportedly in talks about a share sale that would value the startup at $500bn (£370bn), up from $300bn in April and $157bn last October. Anthropic almost trebled its valuation recently, going from $60bn in March to $170bn last month.

“I think one needs to be honest that those sudden increases [in valuation] that people were willing to place on OpenAI, Anthropic and the like were disconcerting,” he said. “That scale of jump and the pace with which it happened did bother me.”

Anderson also raised concerns about Nvidia’s investment of up to $100bn in OpenAI. Nvidia is a key player in AI infrastructure as a maker of the computer chips that are used in training and operating AI models, a position that has driven it to a stock market valuation of $4.5tn. Under the terms of the deal, OpenAI will pay Nvidia in cash for chips, and Nvidia will invest in OpenAI for non-controlling shares."
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=176776043
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Related: Boss of US's biggest bank 'worried' about stock market collapse
By CNN 6:59am Oct 10, 2025
[...]"Fired up by optimism about the productivity-enhancing potential of AI, global equity prices are surging," Kristalina Georgieva, managing director of the International Monetary Fund, said in a speech on Wednesday.
"Today's valuations are heading toward levels we saw during the bullishness about the internet 25 years ago," Georgieva said.
"If a sharp correction were to occur, tighter financial conditions could drag down world growth."
https://www.9news.com.au/world/jp-morgan-boss-jamie-dimon-worried-us-stock-market-fall/59ac50b8-8d29-438a-a0cc-1f59898c5fe2

Fiona Craig
Latest News
October 11 2025 7:11AM

Jamie Dimon, CEO of JPMorgan Chase & Co., has cautioned that U.S. equities could face a “serious fall” within the next six months to two years, pointing to rising geopolitical and economic uncertainties.

In an interview with the BBC, Dimon said he was “far more worried than others” about the potential for a major decline in U.S. stocks, citing “a lot of things out there” that are creating instability. Among these concerns, he highlighted mounting geopolitical tensions, strained fiscal positions, and global remilitarization, which he described as “a lot of issues that we don’t know how to answer.”

Dimon also raised concerns about the current surge in investments tied to artificial intelligence, warning that some of this capital would “probably be lost.” AI has been a key driver of market gains this year, particularly benefiting large-cap technology companies with heavy exposure to the sector.

His remarks come as many investors and institutions draw parallels between the present AI boom and the dot-com bubble of the late 1990s. Earlier this week, the Bank of England warned that valuations in AI-focused firms appear “stretched” and could face a “sharp correction.” Despite these concerns, Dimon maintained a longer-term optimistic stance, telling the BBC he believes “AI in total will pay off.”

On Thursday, U.S. stock futures were mixed as traders digested the recent AI-fueled rally and the minutes from the Federal Reserve’s latest meeting. In the prior session, the S&P 500 and Nasdaq Composite closed at record highs.

Dimon also commented on political pressure facing the Fed. Although U.S. President Donald Trump has repeatedly urged the central bank and Chair Jerome Powell to cut rates aggressively, Dimon said he was willing to take Trump “at his word” that he would not interfere with the Fed’s independence. He stressed that maintaining the central bank’s autonomy remains critical to sound monetary policy.

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