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If the AI bubble bursts, will cheap FTSE 100 stocks shine?

Investors continue to have absolute faith in AI, whereas I continue to accumulate stakes in cheap FTSE 100 stocks. So am I missing out by not joining the party? Peak cycle I’m making a bold call: the Magnificent 7 – led by Nvidia – likely peaked on 29 October. That was the day when the stock hit $5trn and Meta warned it would miss analyst profit expectations due to soaring capital expenditure. Three weeks later, Nvidia’s cash flows also …

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The circular economy of the AI bubble: America's largest companies in the AI industry have carried out a series of unusual financial maneuvers.

The International Monetary Fund, the Bank for International Settlements and the Bank of England have recently warned of the risk of an AI bubble. According to the Bank of England, the overlap with credit markets is particularly dangerous. A bubble burst could trigger a domino effect and threaten the stability of the financial system. The former...

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The Motley Fool UK broke the news in on Monday, December 15, 2025.
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