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Opinion | Just like with the yen, America cannot save the AI bubble

  • Posted on August 14, 2026
  • By South China Morning Post
  • 1 Views
  • 1 min read
In brief

The artificial intelligence sector faces significant headwinds as market valuations increasingly diverge from underlying economic fundamentals, mirroring the structural imbalances that plagued the Japanese yen. When speculative momentum drives asset prices beyond sustainable levels, intervention becomes futile. This analysis explores how both markets demonstrate that unsupported rallies ultimately collapse, regardless of policy support, and examines warning signs within the current AI investment landscape.

Summary auto-generated by AI from the original publisher's content. Editorial standards.

Opinion | Just like with the yen, America cannot save the AI bubble
Opinion | Just like with the yen, America cannot save the AI bubble

The Japanese currency and US tech stocks share the same fatal problem: momentum can’t survive broken fundamentals.
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Author
South China Morning Post

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