The AI spending frenzy is giving investors anxiety

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The AI spending frenzy is giving investors anxiety

Stephen Bartholomeusz Senior business columnist November 5, 2025 — 12.12pm

Concerns over the sky-high stock prices of companies engaged in the artificial intelligence frenzy have intensified over the past week, hitting share, bond, currency and cryptocurrency markets.

The US sharemarket has fallen nearly 2 per cent in a week, bond yields have edged down, the US dollar has reversed its year-long dive and Bitcoin, which was above $US124,000 less than a month ago, briefly dipped below $US100,000 overnight.

Those are all signs of a risk-off environment, with investors moving out of assets perceived to be risky and into the safer harbours of assets such as US Treasuries.

Investors’ abrupt pivo