AI-related equity valuations may be driven by fear of missing out, known as FOMO — but now's not the time to get cold feet, according to strategists.

Global equities are at persistent highs, the European Central Bank said in its Financial Stability Review on Wednesday. At the same time, concentration among a small group of interconnected U.S. hyperscalers has also intensified, making the market vulnerable to sharp adjustments, it warned.

Hyperscalers typically refer to AI-related technology names such as Nvidia , Alphabet , Microsoft and Meta .

"Current market pricing does not appear to reflect persistently elevated vulnerabilities and uncertainties," the review said.

Investors may be driven by "optimism that tail risks will not materialise,"

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