By Hilary Osborne
Publication Date: 2026-01-10 07:00:00
TThe new year has begun as 2025 ended – with a boom in stock prices and warnings from some that growth will be driven by overvalued tech stocks. Fears of an “AI bubble” have been expressed by everyone from the governor of the Bank of England to the boss of Google parent company Alphabet.
Even if you haven’t actively invested in technology stocks, there’s a good chance you have some exposure to companies operating in this space. Even if you don’t, a collapse could destroy the values of other companies.
So should you be worried about an AI bubble? And what can you do to protect yourself? Here are five things you need to know.
Bubbles are difficult to predict
You don’t know whether there’s been a bubble until after the event, says Daniel Casali, chief investment strategist at wealth management firm Evelyn Partners, and if Guardian Money could predict the ups and downs of the stock market, you’d be the first to know (just before we all made money and retired).
Some…
