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Economist warns AI investment bubble risks a 40% financial crisis, with tech sector losses up to 70%.

Market News
03 Nov 2026, 14:31 WIB
Finbold
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Bearish
Economist warns AI investment bubble risks a 40% financial crisis, with tech sector losses up to 70%.

Economist Steve Hanke warned that the current AI investment boom carries a 40% risk of triggering a financial crisis, with potential tech sector losses reaching 70%, similar to the Dot-com crash. He highlighted unsustainable revenue shortfalls and circular financing as key risk factors. Nvidia, a major AI player, could see its market value drop drastically if the bubble bursts. Hanke also noted that upcoming U.S. midterm elections are unlikely to affect this risk, but foreign policy and political instability could worsen the situation.

Nvidia's market cap stands at $4.88 trillion as of Nov 03, 2026 19:42 WIB, with a daily gain of 1.76% on Pluang. Despite the economist's warning of a 40% chance of a 70% crash in the tech sector, Nvidia's stock shows resilience with 65% of Pluang orders leaning towards buying. The typical hold time for NVDA on Pluang is 117 days, indicating a moderate-term investor interest in the stock amid current market conditions.

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