Vanguard: AI Overhype Fueling Unrealistic Stock Valuations

Vanguard argues that while artificial intelligence (AI) holds long-term potential, current market enthusiasm is excessive and stock valuations are inflated. They believe corporate profit growth would need to reach historically high levels, comparable to the impact of electricity in the 1920s, to justify current stock prices. While Vanguard acknowledges AI`s potential to boost productivity and economic growth in the long run, they caution against expecting immediate results and deem a near-term AI-driven economic boom unlikely.