By Robert Williams
Publication Date: 2025-11-21 19:00:00
Chipmaker Nvidia’s profits aren’t typically the biggest story in the fashion world. But this week, concerns about an AI bubble reached a boiling point – with major implications for the crucial U.S. market, where holiday sales will top $1 trillion for the first time this year, according to the National Retail Federation.
For European luxury companies, the resilience of the U.S. consumer has supported companies like LVMH in the current downturn and fueled the growth of outliers like Hermès and Richemont.
What is happening to AI and the US economy? Investor euphoria about the transformative potential of this technology is leading to a) a highly concentrated entry into the largest AI-related tech stocks and b) a massive expansion of infrastructure to meet the demand for hardware, data centers and energy.
AI-related tech giants now account for a third of the S&P 500’s valuation and much of the Nasdaq: Pretty much anyone with a stock portfolio is at risk.
While…
