Sevens Report warns of early signs of an AI-driven market bubble
Sevens Report warns of early signs of an AI-driven market bubble
10 AI Stocks Analysts Are Watching Closely
The latest Sevens Report highlights growing concerns that AI-related stocks—especially chipmakers—may be flashing early warning signs of a bubble.
“Every bubble in modern market history has been based on a narrative,” the report states. “That potentially bubble-inflating theme is unquestionably AI technology.”
Much of the enthusiasm has centered around Nvidia (NVDA), but Sevens warns that relying on a single name can be dangerous. “There are a lot of various factors that can impact a single stock, including a ‘cult following’… a dynamic that has appeared to have emerged with NVDA as well.”
Instead, they recommend watching the broader Philadelphia Semiconductor Index (SOX), which includes multiple AI players like AMD, Qualcomm, and others. “It would be much more prudent to keep tabs on the broader-based semiconductor index, SOX,” they wrote.
The SOX hasn’t hit a new high since July 2024, even as the S&P 500 has climbed roughly 13% in that time. Sevens warns that if AI remains the sole driver of optimism, “this market is in trouble and at risk of rolling over sooner than later.”
Also, click here to view the full article published in Insidermonkey.com on August 4th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.
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