AI stocks may be inflating a bubble that could burst and drag down the wider economy, a warning for anyone with money in the market.

• A bubble forms when investors get so excited about AI that they pay far more for it than it may be worth.
• People borrow against those pricey assets, so a sudden drop leaves them owing more than the asset is worth.
• When everyone rushes to sell at once, prices crash, spending dries up, and the whole economy slows.
• AI companies can't predict how much money will actually come in, so they either underinvest and lose to rivals or overspend on a guess.

Outlook: If AI valuations keep climbing on hype rather than real earnings, the risk of a sharp, debt-fueled sell-off grows.