①According to a Market Pulse survey, people are beginning to question whether companies’ massive investments in artificial intelligence (AI) technology will yield corresponding returns; ②this has also heightened concerns that the tech stock rally may be nearing its peak; ③some analyses suggest that AI is currently more of a cost than a revenue driver.

Cailian Press, October 11 (Edited by Ziyi Zhou) — A recent market survey conducted by Market Pulse indicates growing skepticism about whether substantial corporate investments in AI technology will generate commensurate returns, further intensifying fears that this tech-driven rebound may soon reach its peak.

The survey, conducted between September 29 and October 8, involved 149 respondents.

More than two-thirds of the respondents believe that the trend of AI technology driving extraordinary corporate performance will continue; however, an equal proportion noted that companies’ investments in AI technology do not match the returns they are achieving.

A bubble?

This sentiment is also reflected across broader equity markets. Year-to-date, the S&P 500 index has hit new highs 34 times, staging a strong recovery from its lows in early April when the announcement of large-scale tariff policies by President Donald Trump wiped out $2.5 trillion in market value overnight.

Since then, U.S. tech stocks have embarked on a $16 trillion rebound, with the global AI “arms race” accelerating. This week, the trend reached a new dimension as AI giant NVIDIA Corporation and its rival AMD both struck deals worth hundreds of billions of dollars with OpenAI.

However, warnings from figures such as hedge fund billionaire Paul Tudor Jones have been particularly vocal. This week, he cautioned that a potential bubble burst could have “even more explosive consequences than the one in 1999.”

Irene Tunkel, Chief U.S. Equity Strategist at BCA Research, noted, “Every day brings fresh headlines about the AI arms race among big tech companies. Before this frenzy cools down, the total amount invested could easily reach tens of trillions of dollars. Is it worth it? That depends on who’s spending.”

Questions about whether the stock market is in a bubble may receive answers as early as next week.

Artificial Intelligence Monetization

In the upcoming earnings season reports, one item will receive particularly close scrutiny: capital expenditure, especially that related to artificial intelligence.

This concern is also highlighted in the Market Pulse survey, which reflects worries about spending and returns on artificial intelligence.

Such expenditure has driven the rally in global technology stocks and may continue to provide support. Data shows that spending by large U.S. companies is projected to reach $1.1 trillion between 2026 and 2029, with total spending on artificial intelligence surpassing $1.6 trillion.

Scott Wren, Senior Global Market Strategist at Wells Fargo Investment Institute, stated, “For many companies, artificial intelligence currently acts more as a cost than a source of revenue. It may not be a significant headwind now, but it will be in the future. In the coming years, a few large companies will need to monetize their AI investments.”