AI Bubble Burst Odds Rise Amid Dire Warning by Ex-Fidelity Fund Manager, IBM

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AI Bubble Burst Odds Rise Amid Dire Warning by Ex-Fidelity Fund Manager, IBM

Odds of AI Bubble Burst Jumps on Polymarket

According to Polymarket prediction market data, the odds of the AI bubble bursting in 2026 increased to above 18%. The odds had dropped from 30% to 14% recently after renowned investor Warren Buffett eased AI fears.

However, the AI bubble burst odds ranged between 16-24% amid renewed concerns. depending on the exact resolution criteria. This comes amid sharp declines in key AI stocks, major revenue shortfalls, and a broader market correction.

The US stock futures are falling today amid fresh artificial intelligence jitters in Asia, WSJ reported. Memory chip stocks continued to fluctuate in Asia, with SK Hynix and Samsung Electronics plunging almost 9% today. Samsung and SK Hynix plan to invest billions in AI and semiconductor chip expansion.

Notably, IBM stock fell almost 25% earlier this week, posting its biggest daily decline since 1968. IBM stock closed 2.70% lower at $211.20 on Wednesday, extending the crash to more than 26% in a few days.

Warning by Former Fidelity Fund Manager, IBM, and Others

George Noble, former fund manager at Fidelity, said the fallout from an AI bubble bust could be 17x worse than the dot-com crash. Notably, the dot-com bubble crash erased roughly $5 trillion from the Nasdaq.

“The fallout from this could really be much more significant,” said George Noble when issuing the stark warning on rising AI capex.

Also, Bank of England Governor Andrew Bailey warned that an AI bubble burst would reach the UK economy and could prompt a response in interest rates. Other skeptics, including hedge fund figures and economists also cited trillions in projected AI spending that could trigger the AI bubble burst.

IBM warned that AI infrastructure spending is drawing funds away from software, leading to lower-than-expected revenue growth. The latest IBM stock crash wiped out tens of billions in market value, sending ripples through software and IT stocks.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.