By Sharecafe Team
Publication Date: 2025-11-26 22:00:00
BCA Research’s chief global strategist Peter Berezin has warned that the market may be in the middle of an artificial intelligence bubble. In a recent note, Berezin noted that the likelihood has increased that investors could start penalizing AI companies for increasing capital expenditures. In his opinion, this justifies caution towards AI stocks and the broader S&P 500.
Berezin estimates that hyperscalers, including Amazon, Google, Meta, Microsoft and Oracle, are on track to hold about $2 trillion in AI-related assets on their balance sheets by 2030. He predicts that these companies’ depreciation expenses in 2030 could exceed their total profits today. Assuming a five-year lifespan for the AI systems, the annual depreciation expense could amount to around $400 billion.
To assess the sustainability of the AI boom, Berezin advises investors to monitor AI adoption rates and GPU rental prices. While adoption rates are showing signs of peaking, GPU rental prices are trending downward. However,…