The AI trade is powering global markets to fresh heights — but beneath the record numbers, a split is emerging that has some of Wall Street's biggest names on alert.
According to Cryptobriefing, global stock market capitalization has reached $166 trillion, equal to 137% of global GDP and near record territory, with roughly $27 trillion of those gains driven by artificial intelligence. That figure, measured against economic output, is what analysts call the "Buffett Indicator," a rough gauge of whether stocks look expensive relative to the real economy.
But the rally is uneven. Cryptobriefing reports that JPMorgan is warning of a late-1990s-style divergence: AI chip stocks have surged 87% year-to-date, while hyperscalers like Microsoft and Meta have lagged behind. JPMorgan describes the coming stretch as critical weeks for the sector.
The strain is already visible among smaller AI infrastructure players. Invezz reports that Nvidia-backed names including CoreWeave, Nebius, and IREN have been plunging, even as the broader AI story stays intact.
Not everyone sees danger. A Yahoo Finance piece argues that fear over Microsoft's heavy AI capital spending — with the stock trading around $390 — is "irrational" and a buying opportunity. Separately, AD HOC NEWS notes Meta Platforms trading near recent highs, supported by AI and advertising growth, while other analysts are pointing readers toward what they call bargain AI stocks in the infrastructure space.
Why it matters: with trillions in market value now riding on AI, a widening gap between soaring chipmakers and everything else means the health of the entire market increasingly depends on whether these lofty valuations hold.