AI stock pops are becoming increasingly common. On Monday, AMD soared nearly 40% after a multibillion-dollar partnership with OpenAI. While some see these gains as justified by the companies’ potential for future growth, others worry that investors are chasing an AI bubble.
Analysts point to metrics signaling concern over high valuations. However, despite this data, they believe the rally still has legs. The trend is raising questions about whether investors are experiencing “irrational exuberance” as they bid up stocks like Nvidia.
As investors continue to pile into AI stocks, concerns grow that an AI bubble is forming. Analysts caution that signs of a bubble will become clearer, allowing investors time to exit before a severe drop. Despite this, some experts say it’s essential to ride the wave while it’s here, regardless of how expensive the market is getting.
The current rally has led to record gains in stocks like AMD and Oracle. However, these kinds of pops are becoming increasingly common, leading some to worry that investors are overreacting to the upside.
Source: https://www.axios.com/2025/10/06/amd-ai-bubble-stock-market