Is there an AI bubble? Analysts say Singapore is resilient, but not immune if it bursts

MAS’ warning about sky-high AI valuations reflects growing global scepticism over the assumptions driving recent gains in AI-related stocks. Sharp increases in share prices have convinced some investors that tech stocks are overvalued. Chipmaker Nvidia, which has become the face of the AI boom as many services are powered by their products, hit a high of US$212.19 per share this year, and is up around 40 per cent even after some sell-offs. The tech-focused Nasdaq-100 index is up more than 20 per cent, while the S&P 500 – which is itself tech heavy – has climbed more than 15 per…