Valuations of US tech stocks such as Nvidia, Alphabet, Microsoft and Meta have become “stretched” as investors are driven by “fears of missing out”, the European Central Bank said on Wednesday.
The warning, in the central bank’s latest Financial Stability Review, follows similar cautions from institutions including the IMF and the Bank of England about high valuations of artificial intelligence stocks.
“Current market pricing does not appear to reflect persistently elevated vulnerabilities and uncertainties,” the ECB said.
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