Financial institutions are raising concerns about a potential AI investment bubble. The Bank of England on Wednesday warned that tech stock prices, inflated by AI optimism, could face a sharp correction. The IMF echoed these concerns, noting that global stock prices are surging due to high expectations for AI's productivity potential. Experts point to rapid tech stock growth and stretched market valuations as signs of a bubble. While tech leaders like Jeff Bezos and Sam Altman acknowledge some risks, they speak optimistically about AI's long-term benefits.

Nvidia's sales of its artificial intelligence chipsets rose at a slower pace than analysts anticipated during the company's latest quarter, a letdown likely to stoke worries that technology's latest craze has been fool's gold. The results announced Wednesday were hotly anticipated because Nvidia has emerged as a bellwether of a two-year-old AI boom that has been propelling the stock market to new heights while making the Silicon Valley chipmaker the first with a $4 trillion market value. Although Nvidia's second-quarter profit and total revenue were higher than analyst forecast, sales in the company division responsible for its AI chips were slightly below projects. Nvidia's stock slid 2% in extended trading.