As the AI investment boom continues into 2025, market strategists and investment professionals are divided on whether artificial intelligence stocks represent a bubble or a sustainable growth opportunity. Business Insider surveyed eight prominent investment experts to determine where investors should deploy $10,000 amid ongoing AI bubble concerns.
The bull case remains strong among several strategists. Joe Quinlan, Bank of America’s chief market strategist, dismisses bubble concerns entirely, stating there’s still significant demand ahead. He recommends biotech stocks positioned to benefit from AI-driven drug discovery and industrial stocks building AI infrastructure. Manish Kabra from Société Générale falls into the “boom camp rather than bubble camp,” favoring cash-rich hyperscalers like Alphabet, Microsoft, and Amazon that can fund AI expansion without excessive debt.
Elliot Dornbusch, CIO of CV Advisors overseeing $20 billion in assets, acknowledges high valuations but sees AI as genuinely disruptive. He recommends mega-cap AI leaders including Nvidia, Taiwan Semiconductor, and major tech platforms, while also suggesting 30-year Treasury bonds as a hedge. Randy Hare from Huntington Private Bank calls bubble concerns “overblown” and highlights Walmart’s supply chain AI implementation, Salesforce’s proprietary data advantage, and Google’s Gemini chatbot as compelling opportunities.
The cautious perspective comes from Ben Inker at GMO, who believes an AI bubble exists but remains more contained than previous market manias. Unlike 2000’s dot-com crash or 2008’s broad overvaluation, he argues only AI and growth stocks are overpriced while value opportunities persist. Inker recommends Japanese small-cap stocks benefiting from an undervalued yen and European value stocks in financials, industrials, and healthcare.
Diversification strategies dominate the recommendations. Brad Peterson from Northern Trust sees early-stage AI adoption financed by free cash flow rather than dangerous debt levels. He suggests international equities, small-caps, and AI-adjacent sectors like energy and infrastructure. Jonathan Curtis at Franklin Equity Group would split investments between the Magnificent Seven plus Oracle and Broadcom, alongside select S&P 500 companies in utilities and industrials supporting AI buildout.
Dake Sekera from Morningstar notes that while individual AI stocks may be overextended, the technology sector overall trades at a discount to fair value. He identifies Microsoft and ServiceNow as undervalued AI plays, trading at 20-25% discounts respectively, plus defensive value stocks like Clorox and Mondelez offering high dividend yields for portfolio stability.
Key Quotes
There is no bubble. We still have a lot more demand out there.
Joe Quinlan, Bank of America’s chief market strategist, dismisses AI bubble concerns entirely, expressing strong confidence in continued demand for AI technology and infrastructure. His bullish stance represents one end of the spectrum among investment professionals.
It’s not as extreme as what we saw in 2000, and it hasn’t infected everything. Today, the AI stocks are overvalued, growth stocks are overvalued, but not really much else.
Ben Inker, co-head of asset allocation at GMO, acknowledges an AI bubble but argues it’s more contained than previous market manias. Unlike the dot-com crash or 2008 financial crisis, he sees overvaluation concentrated in specific sectors rather than across all risk assets.
AI is only as good as the data used to create the model. Salesforce has the client data, so they can create an AI model using clients’ existing data.
Randy Hare from Huntington Private Bank explains why Salesforce represents a compelling AI investment opportunity. His insight highlights the critical importance of proprietary data in creating competitive advantages in AI applications.
We understand the concerns that are out there, but we think it’s robust technology and early in adoption.
Brad Peterson, chief investment strategist at Northern Trust, addresses bubble concerns while emphasizing that AI adoption remains in early stages. His observation that AI buildout has been financed with free cash flow rather than debt distinguishes this from previous bubbles driven by excessive leverage.
Our Take
The investment community’s response to AI bubble concerns reveals a sophisticated understanding of market dynamics that goes beyond simple bull or bear positioning. What’s particularly striking is that even skeptics recommend AI exposure, just through different vehicles—suggesting the technology’s transformative potential is undeniable.
The emphasis on balance sheet strength and free cash flow financing distinguishes this AI boom from previous bubbles built on excessive leverage. This structural difference could mean greater sustainability, though it doesn’t eliminate valuation risk.
Most telling is the unanimous agreement on early-stage adoption. If true, current valuations may prove justified by future earnings growth. However, the shift toward AI-adjacent plays and international diversification suggests even bulls recognize concentration risk in mega-cap tech. The smartest strategy appears to be maintaining AI exposure while hedging through sector and geographic diversification—acknowledging both the technology’s promise and valuation uncertainty.
Why This Matters
This comprehensive survey of investment professionals reveals critical insights into AI market dynamics as we enter 2025. The debate over whether AI represents a bubble or sustainable growth opportunity has profound implications for trillions in market capitalization and the broader economy.
The divergence in expert opinions highlights genuine uncertainty about AI valuations, but notably, even skeptics acknowledge AI’s transformative potential. The fact that concerns focus on valuation rather than technology viability suggests AI’s impact is real, even if some stocks have run ahead of fundamentals.
The shift toward AI-adjacent investments—utilities, industrials, infrastructure, and international markets—signals market maturation. Investors are looking beyond pure-play AI stocks to companies benefiting from the massive infrastructure buildout required for AI deployment. This represents a broadening of the AI investment thesis beyond mega-cap tech.
For businesses and workers, the unanimous agreement that AI adoption remains in early stages suggests continued disruption across industries. The emphasis on biotech, supply chain automation, and enterprise software indicates AI’s expansion from consumer applications into core business operations, with significant implications for productivity, employment, and competitive dynamics across sectors.
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Source: https://www.businessinsider.com/where-to-invest-10000-right-now-ai-bubble-stock-picks-2025-12