Stock Market Outlook: Rally Has Upside as AI Bubble Pops and Tech Crash Looms in 2024

The article discusses the potential impact of the artificial intelligence (AI) bubble bursting on the stock market. It suggests that the current AI frenzy is unsustainable and will likely lead to a tech crash in 2024. However, the article argues that this crash could present buying opportunities for investors, as the broader stock market rally still has room to run. Key points include: 1) The AI bubble is being fueled by excessive speculation and unrealistic expectations, similar to past tech bubbles. 2) When the AI bubble pops, it will likely trigger a tech crash, with AI-related stocks and the Nasdaq bearing the brunt of the selloff. 3) However, the broader stock market rally is expected to continue, driven by factors like strong corporate earnings and a resilient economy. 4) The tech crash could create buying opportunities for investors in high-quality tech stocks at discounted valuations. 5) Investors should remain cautious about AI stocks and focus on fundamentals to navigate the eventual market downturn.

Source: https://markets.businessinsider.com/news/stocks/stock-market-outlook-rally-upside-ai-bubble-pops-tech-crash-2024-5