Swiss bank sounds warning over AI investing bubble

Raiffeisen’s chief economist warns of an AI bubble Keystone-SDA

Artificial intelligence (AI) companies have attracted a wealth of investments, but the bubble could soon burst, according to Matthias Geissbühler, head of investments at Switzerland's Raiffeisen bank.

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“As early as autumn 2025, I had warned of a bubble forming,” the expert said in an interview with the AWP news agency.

Although it is not possible to estimate the exact timing, Geissbühler believes the risk would be high “over the next two or three quarters”.

The specialist bases his assessment on various developments in the sector. “One indication could be the slowdown in investment,” he explains. “Meta, for example, recently announced its intention to sell computing power, as it appears it will not be able to utilise the planned infrastructure itself. To me, these signals indicate that we have reached a very advanced stage of a cycle.”

“Over the coming quarters, the major hyperscalers [cloud service providers that operate huge data centres] could scale back their investments, which could lead to a significant correction in semiconductor sector shares,” notes the Raiffeisen analyst.

“Furthermore, in the past, large waves of initial public offerings (IPOs) have often signalled that a cycle has peaked. As is well known, at the end of the year, following SpaceX’s IPO, there are still two heavyweights in the starting blocks: Anthropic and OpenAI.”

“There is a saying that the last 10% of a rally can safely be left to the speculators,” comments Geissbühler. The bank itself has therefore recently taken profits on certain technology shares and reduced its exposure to the sector.

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Translated from Italian, reviewed by an English Department journalist.