Investment expert Rob Arnott warns of an impending market correction, particularly in AI and tech stocks, drawing parallels to historical market bubbles. He specifically targets the “Magnificent Seven” tech stocks (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla), suggesting their collective valuation is unsustainable and predicts a significant downturn by 2025. Arnott emphasizes that while AI technology is revolutionary, current stock valuations are disconnected from realistic growth expectations. He points out that Nvidia’s market cap exceeding $2 trillion represents extreme optimism about future earnings potential. The analysis highlights how market enthusiasm for AI has pushed valuations to levels that historically precede major corrections. Arnott notes that even if these companies continue to grow and innovate, their current stock prices suggest unrealistic expectations for future market dominance and profit growth. He compares the current situation to previous tech bubbles, including the 2000 dot-com crash, where revolutionary technologies still led to significant market corrections. The research suggests that while AI will transform various industries, investor excitement has created a speculative bubble in AI-related stocks. Arnott advises investors to be cautious about heavily concentrated positions in these tech giants and suggests considering value stocks and other market sectors for better risk-adjusted returns.