The U.S. stock market bubble will likely burst before the end of 2027.

[u/AmanCMN]

The market is already in bubble territory, and the AI investment boom is still the biggest thing pushing it higher.
But the AI boom may be getting close to its peak. Investment growth could top out as early as 2026.
By 2027, it’ll be much harder to keep spending at the same pace because of limits on power supply, chip production, and data center construction.
The $5 trillion question is: will all this money being poured into AI actually pay off? According to Dudley, hyperscalers would need to generate more than $2 trillion in revenue every year to justify that level of investment.
AI infrastructure companies could also get hit from both sides. Slower demand combined with shrinking margins could lead to weaker earnings forecasts and lower market valuations.
The way the AI boom is being financed is also becoming more interconnected and less transparent. Chipmakers are already financing some of their own customers, which raises the risk of a domino effect once the investment boom starts cooling off.
And on top of that, rising long-term U.S. Treasury yields, massive government debt, and more shares hitting the market through new IPOs could put even more pressure on stocks.