The AI boom has all the signs of a bubble. An exciting new technology, stretched valuations, extreme concentration, circular financing, and uncertain cash flows. But how does it all end? Tom Stevenson joins us to game it out: a dot-com-style pop? A slow puncture? Or is this time really different? --- Thank you to Trading 212 for sponsoring this episode. Claim free fractional shares worth up to ‎£⁠100. Just create and verify a Trading 212 Invest or Stocks ISA account, make a minimum deposit of £1, and use the promo code &quot;RAMIN&quot; within 10 days of signing up, or use the following link: Sponsored Link. Terms apply - trading212.com/join/RAMIN When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results. Pies &amp; Autoinvest is an execution-only service. Not investment advice or portfolio management. Automatic investing refers to executing scheduled deposits. You are responsible for all investment and rebalancing decisions. Free shares can be fractional. 212 Cards are issued by Paynetics which provide all payment services. T212 provides customer support and user interface. Terms and fees apply. --- Get in touch 📧 mhr@pensioncraft.com 🎧 many-happy-returns.captivate.fm --- Join PensionCraft 🌐 Become a member at pensioncraft.com ▶️ Subscribe on YouTube --- Disclaimer This podcast is for informational and entertainment purposes and is not financial advice. We do not provide recommendations or endorse any decision to buy, sell or hold any security. We cannot be held responsible for any actions listeners may take and investors are encouraged to seek independent financial advice. Copyright 2026 Many Happy Returns

How the AI Investment Boom Ends, with Tom Stevenson

Many Happy Returns

# Full Transcript

**Podcast:** Many Happy Returns

## Participants

- **Ramin Nakiza** (None)
- **Michael Pugh** (None)
- **Tom Stevenson** (Fidelity)

## Transcript

Today's episode is sponsored by Trading212, the platform bringing commission-free investing to everyone. Welcome to Many Happy Returns, where we aim to make you a better investor. I'm Ramin Nakiza. And I'm Michael. The AI boom has all the signs of a bubble. An exciting new technology, stretch valuations, extreme concentration, circular financing, and uncertain cash flows. But how does it all end?

Fidelity's Tom Stevenson joins us to game it out. A dot-com style pop? A slow puncture? Or is this time really different? Okay, let's get into it. So we're delighted to be joined by Tom Stevenson, who's Investment Director at Fidelity. He's had a 20-year career in financial journalism and is The Daily Telegraph's long-serving markets columnist. Thanks so much for joining us, Tom. It's a pleasure. Thanks for having me on.

So over your career and your time covering markets, I'm sure you've seen quite a few booms come and go. How does this one that we're currently in compare, do you think? Well, I think in terms of scale, it's getting up there with previous booms that I've lived through. And I'm thinking particularly about the dot-com bubble now 25 years ago.

I think there are a number of fundamental differences between what's happening today and what happened a generation or so ago. And I'm sure we'll get into some of those. But certainly, I mean, I think there is a very valid question about whether we're talking about a boom or a bubble. And I think the jury is out on that at the moment. But clearly, in terms of the scale of the gains in the stock market, this is very significant.

I've read that in order to have some kind of transformation in society with a new technology, you have to have a bubble. Do you think that's a fair description? Well, I mean, I think when we look at what's going on with AI, it is important to separate out the hype from whether we're talking about a long-term transformational change of the economy.

And I think that both can happen at the same time. So I think that's an interesting way of framing it. And I wouldn't disagree with that. I think if you look at the transformational technologies in the past, you know, things like the railways, the introduction of electricity, the Internet, you know, there was certainly, well, both with railways and the Internet anyway, there was an associated investment bubble as well. So whether it has to be there or not, I don't know. But it very often is.

Which parts of the market do you think have potentially got ahead of themselves? Because we've seen valuations run up, you know, first across NVIDIA and the chip makers. Latest one is these memory stocks who just can't make RAM fast enough, basically. This DRAM is just flying off the shelf. If you look at the South Korean stock market, it's pretty insane. And any kind of infras...

How the AI Investment Boom Ends, with Tom Stevenson

Transcript

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How the AI Investment Boom Ends, with Tom Stevenson

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.