By Bram Berkowitz
Publication Date: 2025-12-16 17:00:00
Key Points
Artificial intelligence stocks now trade at high valuations.
The large AI players are investing tens of billions, if not hundreds of billions, into AI infrastructure, such as data centers.
Investors are starting to question the return on investment.
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Concerns about artificial intelligence (AI) stocks and their monster valuations aren’t exactly new, but the market is now being less coy about it. Following a big multiyear run for the sector, it appears that some investors are setting a high bar for AI stocks. No longer are announcements about higher capital expenditures for AI infrastructure build-out purely driving stocks higher, as investors start to question the sustainability of it all. From Oracle (NYSE: ORCL) to Broadcom (NASDAQ: AVGO), the concerns about AI stocks are starting to pile up.
The returns seem less achievable than perhaps they once were
Concerns over AI stocks have been mounting,…
