The article discusses Goldman Sachs’ warning that the bursting of the AI bubble could be a signal for a broader stock market downturn. According to the investment bank, the AI hype has driven a surge in valuations for companies involved in the technology, reminiscent of past bubbles like the dot-com era. Goldman Sachs believes that if the AI bubble pops, it could trigger a broader market sell-off, as investors reassess the prospects of these companies. The bank’s analysts note that AI stocks have significantly outperformed the broader market, with the Nasdaq AI Index up over 30% year-to-date, compared to a 16% gain for the Nasdaq 100. However, Goldman Sachs cautions that many AI companies are still unprofitable and heavily reliant on future growth expectations, making them vulnerable to a potential correction. The bank recommends investors to be selective and focus on companies with strong fundamentals and sustainable competitive advantages.