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StocksMedium•27 June 2026•

1 min read

GQG: AI Stock Market Bubble Remains Very Much Alive

Key Facts

1GQG Partners believes the current AI spending surge is a market bubble similar to past telecom and shale oil booms.

2Portfolio manager Brian Kersmanc argues capital deployments are based on unproven future demand with weak visibility into long-term returns.

As global AI spending accelerates, GQG Partners has warned that the current surge mirrors past telecom and shale oil bubbles. Portfolio manager Brian Kersmanc argued that capital deployments rely on unproven future demand with weak visibility into long-term returns. Evidence cited includes potential price wars, slowing gains in large language models, and questionable accounting practices at companies like Meta Platforms.

Per market data, Meta closed at $550.25 on June 26, 2026, trading between $540.40 and $556.85. Peer stocks Apple, Alphabet, and Microsoft closed at $550.25, $337.39, and $372.97, respectively, during the same session. GQG's warnings come amid elevated tech valuations, increasing market sensitivity to any negative signals for the sector.

At current levels, Meta's stock trades near its daily high, suggesting short-term positive momentum. However, with rising concerns over AI investment viability, traders await the company's next quarterly results and any regulatory or competitive developments that could impact the sector. The key question remains whether companies can convert massive spending into tangible returns.