Panmure Liberum Head of Strategy warns that the AI bubble may burst in 2027

智通财经2026/10/08 06:51

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The chief market strategist at a London investment bank has issued a stern warning to investors: the investment frenzy surrounding AI may soon come to an end and could trigger the most severe market crash since the global financial crisis. Driven by optimism over surging investments in AI infrastructure, global stock markets have reached record highs this year. However, Joachim Klement of Panmure Liberum stated that his baseline prediction is that this investment boom could collapse as early as 2027, leading to a substantial drop in stock prices. "My central view is that the AI bubble will burst in 2027 or 2028—that is, at some point within the next two years," Klement noted. He pointed out that the free cash flow of hyperscale cloud providers has essentially been depleted, while debt costs are rapidly rising to unsustainable levels for these companies. Klement has set a year-end 2027 target of 5,000 points for the S&P 500 Index, implying a 36% decline from current levels.

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The head of market strategy at a London investment bank has issued a stern warning to investors: the investment frenzy surrounding AI may soon come to an end and could trigger the most severe market crash since the global financial crisis. So far this year, global stock markets have hit record highs, driven by optimism over soaring AI infrastructure spending. However, Joachim Klement of Panmure Liberum says his base scenario is that this investment boom could unravel as early as 2027, leading to a significant drop in stock prices. Klement stated, "My core view is that the AI bubble will burst in 2027 or 2028—at some point within the next two years." He pointed out that hyperscale cloud providers' free cash flow has been largely exhausted, while debt costs are rising rapidly to levels that are becoming unsustainable for these companies. Klement has set a year-end 2027 target of 5,000 points for the S&P 500 Index, implying a potential 36% decline from current levels.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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Panmure Liberum Head of Strategy warns that the AI bubble may burst in 2027

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