According to TechFlow, Jim Covello, head of global equity research at Goldman Sachs, warned that the AI ​​concept may be at risk of a bubble and that shorting AI stocks such as Nvidia is dangerous.

Covello believes that the high cost of AI technology and the lack of breakthrough applications will limit its economic benefits, and that companies’ huge investments in AI may not bring about the expected economic revolution.

Covello pointed out that historical technological transformations usually replace expensive solutions with cheaper ones, but AI is different in that it replaces low-paying jobs with high-cost technology.

Covello worries that the high cost of AI technology makes it difficult to popularize, and although AI advocates believe that costs will fall, there is currently no "killer application" for AI.

The media said that since the end of 2022, the concept of AI has driven the market value of the S&P 500 index to surge by nearly $16 trillion, but skeptics such as Covello believe that the business expectations of AI technology may be exaggerated and the stock market may pull back.